NOVA Chemicals Pursuing Proposed Joint Venture for Ethylene Export Terminal
Calgary, Alberta (March 22, 2018) – NOVA Chemicals Corporation (“NOVA Chemicals”) today 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.
About NOVA Chemicals
NOVA Chemicals develops and manufactures chemicals and plastic resins 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 wholly-owned, ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.
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Forward-Looking Statements: This news release contains forward-looking statements regarding the non-binding memorandum of understanding with SPMT to form a joint venture to develop an ethylene export terminal, including expected export capability and timing of start-up of the export terminal. By their nature, forward-looking statements require NOVA Chemicals to make assumptions and are subject to inherent risks and uncertainties. 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 update the forward-looking statements to reflect new information, subsequent events or otherwise.