Sector News

NOVA Chemicals pursuing proposed JV for ethylene export terminal

March 27, 2018
Chemical Value Chain

NOVA Chemicals Corporation has announced that its subsidiary, NOVA Chemicals Olefins LLC, and a subsidiary of Energy Transfer Partners, Sunoco Partners Marketing & Terminals L.P. (“SPMT”), have entered into a non-binding memorandum of understanding regarding a potential joint venture to develop an ethylene export terminal to be located on the United States’ Gulf Coast.

The parties will seek market commitment for an anticipated start-up of the terminal by mid-2020. The terminal is expected to have the capability to export 800 kta (1.8 billion pounds) per year of ethylene to the global market.

“An ethylene export terminal builds upon NOVA Chemicals’ leadership position in the continually expanding North American ethylene industry,” explained Naushad Jamani, Senior Vice President, Olefins & Feedstock for NOVA Chemicals. “Together with the 2017 acquisition of our interest in the Geismar, Louisiana Olefins facility and our recently announced proposed joint venture in Texas with Total and Borealis, this project would further extend NOVA Chemicals’ presence in the U.S. Gulf Coast, allowing us to better serve our customers in the Americas.”

The project would connect the Lone Star NGL Mont Belvieu LP (“Lone Star”) storage facility at Mont Belvieu, Texas, where the NOVA Ethylene Hub operates, and the Louisiana ethylene market to the export facility via existing pipelines already approved for ethylene transportation. The project would provide significant value by linking low-cost U.S. Gulf Coast ethylene production to derivative plants around the world.

The NOVA Ethylene Hub is the primary transaction point for the purchase and sale of ethylene in the U.S. Gulf Coast, and is operated by NOVA Chemicals under a long-term lease from Lone Star, which is an affiliate of SPMT. The NOVA Ethylene Hub would provide an active ethylene source for delivery to the export facility by both physical transfer and exchange.

The proposed joint venture is subject to sufficient market interest and customary conditions and approvals, including completion of definitive agreements and approval of NOVA Chemicals board of directors.

Source: NOVA Chemicals Corporation

comments closed

Related News

December 3, 2022

Corteva to acquire Stoller Group for $1.2 billion

Chemical Value Chain

Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.

December 3, 2022

OMV introduces new corporate structure to drive sustainable growth and innovation

Chemical Value Chain

OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.

December 3, 2022

What does the current downturn in industrial manufacturing mean for executives searching for a senior role in the chemicals industry?

Chemical Value Chain

The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.