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Crown jewel lost? Saudi take 100% control of America's largest oil refinery

Port Arthur is considered the crown jewel of the US refinery system.

IANS  |  Austin 

Oil, Oil Prices, US
Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that hammered prices, in Cushing, Oklahoma

Saudi Aramco, the Saudi Arabia's state-owned behemoth, took 100 per cent control of the sprawling Port Arthur refinery in on Monday, completing a deal that was first announced last year.

Port Arthur is considered the crown jewel of the refinery system. The Gulf Coast facility can process 600,000 barrels of per day, making it the largest refinery in North America, CNNMoney reported.

Aramco previously owned 50 per cent of Port Arthur through a joint venture co-owned with Royal Dutch (RDSA) called Motiva Enterprises.

But the two giants had a rocky relationship and reached a deal in March 2016 to separate their assets. put out a statement on Monday confirming the "completion" of that break-up.

In addition to Port Arthur, Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of and the majority of Florida.

is already America's second-largest source of crude, behind only Canada. The imported 1.3 million barrels of Saudi crude a day in February, up 32 per cent from last year, according to the Energy Information Administration.

 

First Published: Tue, May 02 2017. 09:31 IST
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