Saudi Crown Prince Prince Mohammed bin Salman signed on Saturday two memorandums of understanding (MoU) in Houston which paved the way for Saudi Aramco's Motiva to expand in petrochemical production.
On Saturday, the Crown Prince witnessed the signing of two MoUs worth between $8 billion to $10 billion with US companies Honeywell UOP LLC and TechnipFMC plc, in a ceremony in Houston.
Motiva Enterprises LLC is a wholly-owned downstream oil and gas subsidiary of Saudi Aramco.
One of the MOUs signed paves the way to evaluate the use of TechnipFMC plc’s world scale mixed-feed ethylene production technologies in the US.
The second one enables Motiva to examine the use of UOP LLC’s world scale aromatics extraction and production technologies for benzene and paraxylene to develop a potential complex along the US Gulf Coast.
The signing ceremony was attended Saudi Ambassador to US Prince Khalid bin Salman bin Abdulaziz, the official delegation accompanying HRH Crown Prince Texas’ governor Greg Abbott, US Secretary of Energy Rick Perry, Saudi Minister of Energy, Saudi Aramco President & CEO Amin Nasser, and Saudi Industry and Mineral Resources Engineer Khaled al-Falih who delivered a speech on the occasion.
The MOUs are a first step in Motiva’s expansion into petrochemicals. Final investment decisions on these projects are expected to be made in 2019 and it depends on strong economics, competitive incentives, and regulatory support.
Commenting on the Crown Prince’s visit to Houston, Saudi Aramco CEO said that for more than 85 years, Saudi Arabia and the United States have enjoyed a mutually beneficial relationship based upon the strong legacy and longstanding foundation established by the leaders of both nations.
“The presence of Crown Prince HRH Mohammed Bin Salman today further advances that proud heritage, bolstering Saudi Aramco’s presence and partnerships with top American companies in the energy hub of Houston,” he told the attendees.
Naser asserted that the signing of MoUs and announcements strengthen Aramco’s commitment to supporting US economic growth and development through investments while also significantly investing in exploration and production technologies and innovative solutions aligned with Saudi Vision 2030 that will serve both nations over the long term.
The Crown Prince’s visit to Houston included a number of engagements and activities driven by Saudi Aramco, such as a tour of the company’s Houston R&D Center.
Prince Mohammed was briefed on the latest Upstream technology and innovation focusing on discovery and recovery of conventional and unconventional resources.
He also visited areas affected by Hurricane Harvey which have been rebuilt as a result of an Aramco subsidiary Aramco Services Company’s contribution under the Houston Habitat for Humanity initiative.
Aramco and Saudi student volunteers embraced Houston Habitat for Humanity to assist those who lost their homes in the flood. They also teamed up to remove flood-soaked drywall, cabinetry and appliances in one of the Habitat neighborhoods, which saw 100 homes sustain major damage.
Crown Prince also attended a special gathering of Saudi Aramco’s annuitants, as a tribute to their service which is testimony of the long-standing historical ties between the company and the US.
