Nova Chemicals signs agreement for ethane extraction project
Alta.-based Nova Chemicals Corporation has announced that it has reached an agreement with hydrocarbon producer Wil...
Alta.-based Nova Chemicals Corporation has announced that it has reached an agreement with hydrocarbon producer Williams Cos. to extract ethane from the Alberta oil sands. Nova said the feedstock would be delivered to the company’s Joffre, Alta. manufacturing facility through the existing Joffre Feedstock Pipeline.
“We’re very pleased to be the first petrochemical company to find a potential path to the economic recovery of ethane from the Alberta oil sands, which contain the second largest proven reserves of oil in the world,” said Nova chief operating officer Chris Pappas in a press release. “This additional, cost-advantaged feedstock will help secure our foundation for additional growth in Alberta.”
Under the terms of the letter of intent, Williams will modify the existing oil sands off-gas liquids fractionation facility near Redwater, Alta. to enable the extraction of ethane and ethylene. Williams currently processes an off-gas liquids stream at Redwater for propylene production.
Nova would be the exclusive long-term customer for the project, which could begin operating in stages starting as early as 2010.