23 February 2011 21:47 [Source: ICIS news]
HOUSTON (ICIS)--Canada’s NOVA Chemicals plans to buy and transport ethane from North Dakota via a proposed pipeline to Alberta, Canada, the company said on Wednesday.
NOVA said it has the right to buy 100% of the ethane from the North Dakota plant.
The proposed 60,000 bbl/day pipeline would be built, owned and operated by Vantage and would start up in the fourth quarter of 2012, NOVA said.
Vantage filed regulatory applications for the pipeline with Canadian and US regulators in early February, NOVA said.
“The signing of these agreements is an important milestone and we are now one step closer to securing access to a sustainable, long-term supply of cost-competitive feedstock,” said NOVA chief executive Randy Woelfel.
“This new source diversifies our feedstock supply from ethane based on natural gas flows exported from Alberta to include new sources based on associated gas from oil production, and positions NOVA for long-term growth,” he said
NOVA said it was taking several initiatives to complement its ethane supply sources in Alberta.
Financial aspects of the agreements were not disclosed.
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