Nova, Borealis, Total Petrochemicals to form ethylene, polyethylene JV
Key aspects of the proposed JV include the construction of a new 2.2 billion lb capacity ethylene cracker in Port Arthur, Tex.; and the construction of a new 1.35 billion lb capacity polyethylene resin unit in Bayport, Tex.
Chemical makers Nova Chemicals Corporation and Borealis AG are forming a joint venture with energy provider Total Petrochemicals that will include building two new chemical production facilities in Texas.
Key aspects of the proposed joint venture include the construction of a new 2.2 billion lb capacity ethylene cracker in Port Arthur, Tex.; and the construction of a new 1.35 billion lb capacity polyethylene resin unit in Bayport, Tex.
The ethylene cracker and PE unit are expected to start-up in late 2020, Calgary-based Nova said in a statement, with a final investment decision expected in late 2017.
The proposed new PE unit would make Borealis’ Borstar brand PE resin.
In a statement, officials said that the JV “will 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 also will provide competitive export access to markets outside of North America to help meet growing global demand for PE, they added.
Nova is owned by the International Petroleum Investment Co. (IPIC) of Abu Dhabi. IPIC also is majority owner of Vienna-based Borealis. Total is a unit of French petrochemicals firm Total SA.
“This opportunity will complement Nova’s 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,” said Todd Karran, Nova’s president and CEO. “It also paves the way for [us] to collaborate further with Borealis as part of the IPIC family of companies.”