Nova to transport US ethane by pipeline for use in Alta. facility

Calgary, Alta.-based chemicals manufacturer Nova Chemicals has signed a memorandum of understanding with Hess Corporation, of New York City, to start receiving ethane from Hess’ plant in Tioga, North Dakota for use in Nova’s Joffre ethylene and PE production complex.

To facilitate this, a new pipeline is set to be built between the so-called “Bakken Formation” oil and gas field, located between the states of North Dakota and Montana in the U.S., and Saskatchewan and Red Deer, Alta. in Canada. The pipeline is expected to be completed by the fall of 2010.

The arrangement also involves Nova purchasing 100 per cent of the ethane produced at Hess’ Tioga gas plant.

In a press release, Nova also said it’s on the lookout for additional producers active in the “Bakken Formation” to secure more ethane supply for Joffre in the future.