Saudi Aramco has acquired the trading arm of US refiner Motiva Enterprises LLC, according to Bloomberg, as Aramco expands its operations in the Americas.
According to Bloomberg, Aramco also set up a new entity, Houston-based Aramco Trading Americas LLC (ATA), which will be the regional hub for the Saudi company’s trading arm, it said in a statement.
ATA will be the sole supplier and offtaker for Motiva, which owns the biggest refinery in the US, the 630,000 barrel-a-day Port Arthur plant.
Motiva Enterprises is a joint venture between Saudi Aramco and Shell Oil Company. Motiva was established in 1998 to combine the major elements of the Gulf and East Coast refining and marketing operations of Shell Oil Company and Star Enterprises (an earlier joint venture between affiliates of Texaco Inc. and Saudi Aramco).
This investment is part of a larger strategy by Saudi Arabia to expand its presence in the U.S. energy market and diversify its economy away from reliance on oil exports. The country is also investing in renewable energy sources, such as solar and wind power, as well as in technologies to reduce carbon emissions from its oil and gas operations.
The moves are “a giant step towards executing our ambitious global growth strategy,” said Mohammed K. Al-Mulhim, chief executive of Aramco’s trading operations, according to Bloomberg.
Saudi Aramco, the world’s largest oil company, is pushing ahead with plans for an initial public offering of its energy-trading business that could value the unit at more than $30 billion, Bloomberg reported in October.
