Canada’s Sarnia petchem hub to gain from US feedstock pipeline

15 February 2010 19:01  [Source: ICIS news]

TORONTO (ICIS news)--A possible feedstock pipeline project from the US would help chemical firms at the Sarnia petrochemicals hub in southern Ontario, Canada, to boost production and secure jobs, observers said on Monday.

Buckeye Partners, a pipeline company, and NOVA Chemicals last week announced plans to ship natural gas liquids (NGLs) via a pipeline from the Marcellus Basin in Pennsylvania to Corunna, near Sarnia, where the NGL would be used as petrochemical feedstock.

NOVA has a refinery and petrochemicals complex at Corunna with capacities for over 6.5bn pounds/year (2.9m tonnes/year) of basic petrochemicals and 3bn pounds/year of refinery and energy products, according to its website.

However, the project would help diversify refining and petrochemical feedstock supply not only for NOVA but would also benefit other potential users at Sarnia, commentators said.

Chemical producers at Sarnia have had difficulties in obtaining sufficient feedstock in the past, and limited feedstock availability was the main reason Dow Chemical eventually shut down all of its manufacturing plants at the site.

NOVA and Buckeye did not disclose capacity or financial details for their pipeline project, which was still subject to a number of conditions, they said. 

For more on NOVA, Dow Chemical and other producers, visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
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