Enterprise Products acquires Nova’s ethylene storage business in Texas
The divestment will allow Nova to focus on its core businesses of ethylene and polyethylene production.
Houston-based energy and petrochemicals company Enterprise Products Partners L.P. has acquired the ethylene storage and trading business operated by Nova Chemicals Corp. at the Mont Belvieu trading hub in Texas.
Under the deal, a subsidiary of Enterprise acquired a wholly owned subsidiary of Nova, which operates an ethylene storage business and trading hub in Mont Belvieu.
Calgary-based Nova will be a long-term storage customer in the Enterprise system.
The financial terms of the deal were not disclosed.
“The acquisition, which gives Enterprise ownership of the largest ethylene market hub in Texas since it was established in 2001, will complement Enterprise’s own growing ethylene network in the region,” said Chris D’Anna, senior vice president, petrochemicals of Enterprise’s general partner. “The combined system offers multiple benefits for producers, consumers and traders, such as increased physical connectivity, greater market liquidity and pricing transparency, as well as improved access to Enterprise’s ethylene midstream services, including our export terminal and growing Gulf Coast pipeline system.”
In a July 1 news release, Nova said that the divestment would allow it to focus on its core businesses of ethylene and polyethylene (PE) production, including completion of its Advanced Sclairtech PE facility in Ontario.