In a significant development for the Texas energy landscape, the Texas Commission on Environmental Quality (TCEQ) has officially canceled Motiva’s construction permits for its proposed ethane cracker in Port Arthur, Texas. This decision follows Motiva’s failure to commence construction by the early August deadline.
On September 4, 2024, TCEQ announced the cancellation of the permits for the facility, which was intended to convert ethane—a natural gas component—into ethylene. Ethylene is a key building block for plastics and other chemicals, playing a crucial role in the energy and manufacturing sectors.
Motiva, a subsidiary of Saudi Arabian state oil company Saudi Aramco, received two 18-month extensions for the construction deadline. The first extension was granted on August 16, 2021, and the second on March 13, 2023. These extensions provided the company until August 6, 2024, to initiate construction. However, with the deadline now passed and no construction activity underway, the permits have officially expired.
If Motiva wishes to proceed with the development of the ethane cracker, it will be required to reapply for construction permits. This development highlights the complexities and regulatory challenges faced by energy companies in Texas, underscoring the need for continued advocacy and awareness within the industry.
For more details, read the original news brief here: Oil & Gas Watch
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