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HOUSTON (Reuters) – Saudi Aramco IPO-ARMO.SE is studying a multi-billion dollar plan to build a petrochemical plant at the Port Arthur, Texas, refinery operated by its subsidiary Motiva Enterprises LLC [MOTIV.UL], sources familiar with the company’s plans said on Saturday.

FILE PHOTO: Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show and Conference (MOES 2017) in Manama, Bahrain, March 7, 2017. REUTERS/Hamad I Mohammed/File Photo

Aramco is scheduled on Saturday to sign agreements in Houston with Honeywell UOP (HON.N) to study an aromatics unit and with Technip FMC (FTI.N) for a unit to produce polymers from ethane, the sources said.

The aromatics unit Honeywell UOP is studying would convert benzene and paraxylene, byproducts of gasoline production, into 2 million tons annually of feedstocks for chemicals and plastics, according to the sources.

The unit Technip FMC is studying would convert ethane into 2 million tons a year of ethylene, which is used to make plastics, the sources said.

The agreements with the two companies include technology licenses for proprietary systems they produce, the sources said.

Reporting by Erwin Seba; Editing by Sandra Maler

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