Cost-advantaged raw materials are the cornerstone of NOVA Chemicals’ long-term competitiveness and a key driver of our profitability.

The Company’s manufacturing facility in Joffre, Alberta, Canada, benefits from the region’s structural cost advantages for the production of ethylene and polyethylene. The “Alberta Advantage” enjoyed by the Joffre site historically represents an average cost advantage of 7¢ per pound on the cash cost of ethylene production compared to similar crackers on the U.S. Gulf Coast. In 2006, the Alberta Advantage reached a record quarterly differential of 17¢ per pound on the cash cost of ethylene production and averaged 11¢ per pound for the year, bringing the average for the last three years to 8¢ per pound.

A new initiative launched by the Alberta government should help to maintain the long-term competitiveness of Alberta ethane. In September 2006, the government announced the Incremental Ethane Extraction Policy, which encourages increased ethane extraction and infrastructure investments to bolster a strong and growing petrochemical industry in Alberta.

Building on the momentum generated by the Alberta government, NOVA Chemicals is working with partners to ensure we continue to benefit from long-term access to advantaged Alberta ethane.