NOVA Chemicals, Energy Transfer JV for Ethylene Export Terminal
NOVA Chemicals Corporation announced that its subsidiary, NOVA Chemicals Olefins, and a subsidiary of Energy Transfer Partners, Sunoco Partners Marketing & Terminals (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," Naushad said.
The project would connect the Lone Star NGL Mont Belvieu 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.
