Arab News, Thursday, Jan 19, 2023 | Jamadi Al Thani 26, 1444
Saudi Aramco increases access to North America’s largest oil refinery as it launches new US subsidiary
Saudi Aramco’s global trading arm has bought US firm Motiva Trading as it seeks
to expand its footprint across North and South America.
As well as acquiring 100 per cent of the firm,
Aramco Trading Co. has also launched a Texas-based subsidiary – Aramco Trading
The new entity will be the sole supplier and
‘offtaker' of Motiva Enterprises, the owner of North America’s largest oil
refinery with a crude capacity of 630,000 barrels a day of consumer and
commercial grade fuels and base oils.
“The acquisition of Motiva Trading and the
establishment of Aramco Trading Americas are a giant step towards executing our
ambitious global growth strategy, which aims to expand our geographical reach
and scale of operations, while further strengthening our product flexibility and
optionality,” said President and CEO of ATC Mohammed K. Al-Mulhim.
Furthermore, by allowing customers access to a
sturdy hydrocarbon system, this is projected to bring about strength in the
global value chain in the future, according to the statement.
The deal is the latest between Aramco and a US
firm, with the Saudi company signing an agreement valued at $250 million in
September 2022 with Beyond Limits, a California-based artificial intelligence
technology company, to build a global AI corridor.
The corridor would create an ecosystem in the
Kingdom by commercializing complex AI solutions, training Saudi talent and
supporting Saudi startups.
Ties between Saudi Aramco and the US go deep, with
the energy company employing thousands of staff at research and technology
centers in Houston, Detroit and Boston, as well as at its corporate headquarters
in New York.
It owns and operates the Motiva refinery and
petrochemicals facility on the coast of the Gulf of Mexico, the biggest such
plant in North America.
Speaking after the announcement, Aramco CEO Amin
Nasser told Bloomberg he is seeing increased demand for fuel from China and is
discussing investments in petrochemicals with Chinese companies.
Demand for jet fuel is now around 1 million
barrels per day, which is below pre-pandemic levels but is improving, he added.