Nova Chemicals has new long-term feedstock supplier

In a move that will expand its two processing facilities in Alberta, global energy company Williams Cos. Inc. has reached a long-term agreement to provide an ethane/ethylene mix to chemical supplier Nova Chemicals Corp.

Tulsa, Okla.-based Williams will produce up to 17,000 barrels of ethane and ethylene per day for Nova Chemicals, a production rate that will be supported by expansion of the firm’s two Alberta processing facilities. According to a news release, Williams will upgrade its oil sands off-gas extraction plant near Fort McMurray, Alta., and construct a de-ethanizer at the Redwater, Alta. natural gas liquids-olefins fractionator near Edmonton.

The process that converts heavy tar-sands bitumen into usable oil also produces an off-gas byproduct that includes a mixture of natural gas, natural gas liquids and olefins.

“These expansions will add incremental ethane supplies in Alberta, which are high-demand products for the petrochemical industry in Canada,” said Rory Miller, president of Williams’ midstream business. “It’s a significant growth opportunity for our Canadian midstream business, as we’re uniquely positioned as the only company with off-gas experience and facilities in the region.”

“Securing this additional feedstock source for our facilities in western Canada will further support competitive polyethylene production for many years to come, while setting ourselves up for future growth,” said Randy Woelfel, Nova Chemicals’ CEO.

Nova Chemicals is headquartered in Calgary.