News Brief

September 17, 2024

Texas agency cancels permit for Motiva ethane cracker in Port Arthur after company misses deadline

After missing an early August deadline to begin construction, a Saudi-owned company will have to reapply for permits if it intends to go ahead with its construction of a proposed plant to make plastic ingredients.

On Sept. 4, 2024, the Texas Commission on Environmental Quality (TCEQ) cancelled Motiva's construction permits for its proposed Port Arthur Ethane Cracker in Jefferson County, Texas. These plants convert ethane, a component of natural gas, into ethylene, which is used as a building block for plastics and other chemicals.

TCEQ granted Motiva, wholly owned by Saudi Arabian state oil company Saudi Aramco, two 18-month construction deadline for the facility, which was designed to produce 1.9 million metric tons of ethylene annually. The TCEQ granted the first extension on Aug. 16, 2021, and the second on March 13,2023 - giving Motiva until Aug. 6, 2024 to begin construction.

The permits expired when the most recent deadline passed and construction had not started. Motiva would have to reapply for construction permits if it decides to move forward with the facility.

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