NOVA Chemicals and Borealis enter Preliminary Agreement with Total to meet growing global demand for polyethylene
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NOVA Chemicals Corporation, 1000 Seventh Avenue S.W., Calgary, Alberta, Canada T2P 5L5
www.novachemicals.com | 403.750.3600 tel | 403.269.7410 fax
Calgary, Alberta (March 27, 2017) - NOVA Chemicals Corporation ("NOVA Chemicals") and Borealis AG ("Borealis") signed a preliminary agreement to form a joint venture (JV) with Total Petrochemicals and Refining USA, Inc. ("Total") that will develop and own a new light feed cracker and a new Borstar(R) polyethylene (PE) facility in Bayport, Texas.
Key aspects of the JV will include:
- Building a new 2.2 b lb (1000 ktpa) ethylene cracker in Port Arthur, Texas
- Building a new 1.35 b lb (625 ktpa) Borstar PE plant in Bayport, Texas
- Total's existing Bayport PE facility, total capacity 880 m lb (400 ktpa)
The ethylene cracker and Borstar PE unit are expected to start-up in late 2020. A final investment decision is expected in late 2017, pending NOVA Chemicals' Board and regulatory approvals and execution of definitive agreements.
The JV is expected to create significant synergies by enabling strong integration of the value chain and the first-time use of the proprietary Borstar PE process technology in the Americas. It is also expected to provide competitive export access to markets outside of North America to help meet the growing global demand for PE.
"This opportunity will complement NOVA Chemicals' existing asset structure in Canada and broaden our PE product slate as we continue to grow our business in the Americas to deliver products that make everyday life healthier, safer and easier," stated Todd Karran, President and CEO, NOVA Chemicals. "It also paves the way for NOVA Chemicals to collaborate further with Borealis as part of the IPIC family of companies," continued Karran.
"Working in a JV with NOVA Chemicals and Total on a cost effective brownfield investment project, integrated with a cracker is an attractive opportunity. We can also leverage our proven technology and benefit from large scale experience gained in other projects (e.g., Borouge) and develop the project together with NOVA Chemicals," said Borealis CEO Mark Garrett.
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(R). NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is a wholly owned subsidiary of the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With its Head Office in Vienna, Austria, the company currently has around 6,600 employees and operates in over 120 countries. Borealis generated EUR 7.2 billion in sales revenue and a net profit of EUR 1,107 million in 2016. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% belonging to Austria-based OMV, an integrated, international oil and gas company. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).
Total is a global integrated energy producer and provider, a leading international oil and gas company, and a major player in solar energy with SunPower and Total Solar. Our 98,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, we focus on ensuring that our operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits.
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For further information please contact:
NOVA Chemicals - Media Inquiries
Leader, Corporate Communications
NOVA Chemicals - Investor Inquiries
Leader, External Financial Reporting
Senior External Communications Manager
Tel. +43 (0)1 33 400 726 (Vienna, Austria)
The 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
Borstar is a registered trademark of the Borealis Group.
Forward-Looking Statements: This news release contains forward-looking statements regarding the preliminary agreement to form a joint venture with Total, including the expected timing of start-up of the venture and potential synergies and opportunities. 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.
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Source: NOVA Chemicals Corporation via Globenewswire