NOVA inks deals for Marcellus Shale ethane supply, delivery to Canada cracker
NOVA Chemicals has entered into three agreements to help revamp its Corunna cracker in Ontario, Canada, to utilize up to 100% natural gas liquids (NGL) feedstocks.
The first deal is a transportation service agreement with Sunoco Pipeline for the delivery of ethane feedstock from the Marcellus Shale basin into the Sarnia, Ontario region.
The second is for a long-term ethane supply from the Marcellus Shale with Caiman Energy, while the third agreement is for long-term ethane supply from the Marcellus Shale via Range Resources, the company said.
“We are excited to have these critical strategic pieces in place,” said Randy Woelfel, CEO. “The capital project enabling our Corunna cracker to utilize up to 100% NGLs is on target, and we anticipate seeing all three project initiatives – safe, reliable pipeline transportation, ethane supply and facility upgrades – come together before the end of 2013.”
NOVA said it continues to work with other producers in the Marcellus region, including Statoil, to secure additional ethane feedstock for its Corunna cracker.
“The revamp of the Corunna cracker is step one in our ‘NOVA 2020’ vision and will position our Ontario assets as a highly competitive, robust platform that can drive further polyethylene growth,” added Woelfel.
The proposed projects are subject to receipt of customary regulatory and other approvals, according to the company.
Comments