NOVA Chemicals announces first utilization of ethane supplied from Bakken Shale
Calgary, Alberta (June 13, 2014) – NOVA Chemicals Corporation (NOVA Chemicals) today announced that the first barrels of ethane supplied from natural gas associated with oil production from Bakken Shale are being utilized at its Joffre, Alberta complex.
The ethane was produced at Hess Corporation’s Tioga, North Dakota plant and transported across the border into Alberta via the Vantage Pipeline. The Vantage Pipeline connects to the Alberta Ethane Gathering System (AEGS) in Empress, Alberta for the final journey to Joffre. NOVA Chemicals is the contract operator of both AEGS and the Vantage Pipeline.
The Vantage Pipeline has an initial design capacity of 40,000 bpd but is expandable to greater than 60,000 bpd, a volume that reflects more than 20% of Alberta’s existing installed ethylene production capacity. Ethane extracted from associated gas produced from Bakken Shale is expected to be a growing and stable feedstock supply source for the Alberta petrochemical industry.
“The introduction of Bakken Shale-based ethane into the feedstock diet at Joffre marks an important milestone in the diversification of our ethane sources for the region and our NOVA 2020 strategy to capitalize on North American demand,” stated Todd Karran, NOVA Chemicals Acting CEO and CFO. “The new supply sources we recently began to use, together with those currently in development, should enable us to run our existing polyethylene plants at full capacity, as well as support our PE1 Expansion project in Joffre and position us well for potential further growth.”
About NOVA Chemicals Corporation
NOVA Chemicals develops and manufactures chemicals, plastic resins and end-products that make everyday life safer, healthier and easier. Our employees work to ensure health, safety, security and environmental stewardship through our commitment to sustainability and Responsible Care®. NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is a wholly owned subsidiary of International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates.
Visit NOVA Chemicals on the Internet at www.novachemicals.com.
About NOVA 2020
NOVA 2020 is NOVA Chemicals long-term asset strategy to capitalize on emerging feedstock opportunities and growing North American demand.
NOVA 2020 lays out the strategic direction and vision of the organization. As NOVA Chemicals evolves its asset base to support leadership in the markets it serves, this endeavor will not only help deliver more capacity to customers, but also maximize the value generated by NOVA Chemicals’ business.
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NOVA Chemicals’ logo is a registered trademark of NOVA Brands Ltd.; authorized use. Responsible Care® is a registered trademark of the Chemistry Industry Association of Canada.
Forward Looking Statements: This news release contains forward-looking statements regarding ethane supplied from natural gas associated with oil production from Bakken Shale, and NOVA Chemicals beliefs about its feedstock supply for its Joffre operations and its impact on current and future polyethylene production. By their nature, forward-looking statements involve assumptions, known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Detailed information about some of the known risks and uncertainties is included in the “Risk Factors” section of our annual report on Form 20-F filed with the United States Securities and Exchange Commission (“SEC”) on February 27, 2014 as well as our other filings with the SEC which can be obtained on our website at http://www.novachemicals.com or the SEC’s website at http://www.sec.gov. Readers are specifically referred to those documents. 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 the forward-looking statements to reflect new information, subsequent events or otherwise.