NOVA Chemicals and Williams announce letter of intent for project to extract ethane from Alberta oil sands
FOR IMMEDIATE RELEASE
Pittsburgh, PA (July 23, 2007) - NOVA Chemicals Corporation (NYSE, TSX: NCX) today announced it has reached an agreement with Williams (NYSE: WMB) to evaluate processing current and future off-gas streams from the Alberta oil sands to extract ethane. This feedstock would be delivered to NOVA Chemicals' Joffre, Alberta, manufacturing facility, utilizing the existing Joffre Feedstock Pipeline.
"We're very pleased to be the first petrochemical company to find a potential path to the economic recovery of ethane from the Alberta oil sands, which contain the second largest proven reserves of oil in the world," said Chris Pappas, Chief Operating Officer of NOVA Chemicals. "This additional, cost-advantaged feedstock will help secure our foundation for additional growth in Alberta."
Under the terms of a letter of intent, Williams would modify the existing oil sands off-gas liquids fractionation facility near Redwater, Alberta, to enable extraction of ethane and ethylene. This facility would be owned by Williams. NOVA Chemicals would be the exclusive, long-term customer for the project, which is expected to begin operating in stages starting as early as 2010. Williams is currently processing an off-gas liquids stream at Redwater for the production of propylene.
NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible Care® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX.
Visit NOVA Chemicals on the Internet at www.novachemicals.com.
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NOVA Chemicals media inquiries, please contact:
Greg Wilkinson - Vice President, Public and Government Affairs
Tel: +1 412.490.4166
NOVA Chemicals Investor Relations inquiries, please contact:
Chris Bezaire - Vice President, Investor Relations
Tel: +1 412.490.5070
Graphics are available upon request.
Forward-Looking Information
The information in this news release contains forward-looking statements regarding a proposed project with Williams, including statements that: additional, cost-advantaged feedstock will help secure NOVA Chemicals? foundation for additional growth in Alberta; Williams would modify the existing oil sands off-gas liquids fractionation facility near Redwater, Alberta to enable extraction of ethane and ethylene; the facility would be owned by Williams; and NOVA Chemicals would be the exclusive, long-term customer for the project, which is expected to begin operating in stages starting as early as 2010. By their nature, forward-looking statements require NOVA Chemicals to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions and projections will not prove to be accurate, that NOVA Chemicals' assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections. Some of the risks that could affect NOVA Chemicals' future results and could cause results to differ materially from those expressed in the forward-looking statements include: uncertainties regarding the negotiation and the completion of final documentation evidencing the proposed project with Williams; commodity chemicals price levels (which depend, among other things, on supply and demand for these products, capacity utilization and substitution rates between these products and competing products); feedstock availability and prices; operating costs; starting up and operating facilities; the impact of competition; uncertainties associated with the North American, South American, European, and Asian economies and other risks detailed from time-to-time in the publicly filed disclosure documents and securities commissions reports of NOVA Chemicals. NOVA Chemicals' forward-looking statements are expressly qualified in their entirety by this cautionary statement. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable law, NOVA Chemicals undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
Responsible Care® is a registered trademark of the Canadian Chemical Producers Association (CCPA) in Canada and is a registered service mark of the American Chemistry Council (ACC) in the United States.
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