Canada’s NOVA reaches deal to buy Marcellus Shale ethane

08 March 2011 20:49  [Source: ICIS news]

HOUSTON (ICIS)--NOVA Chemicals will obtain ethane feedstock from the Marcellus Shale Basin through a supply agreement with Caiman Energy, the Canadian polyolefins producer said on Tuesday.

NOVA would buy up to 20,000 bbl/day from Caiman’s Fort Beeler gas processing plant in Cameron, West Virginia, under the memorandum of understanding, NOVA said.

The ethane would feed NOVA’s Corunna cracker at Sarnia, Ontario, the company said.

Caiman would expand its Fort Beeler gas processing plant as part of the agreement, NOVA said.

The arrangement is subject to NOVA finalising a pipeline transportation agreement to move ethane from Fort Beeler to Ontario.

NOVA did not disclose the duration of the supply arrangement or the financial terms.

“NOVA Chemicals will continue to move forward aggressively with the steps necessary to assure our Corunna cracker is the destination of choice for Marcellus based natural gas liquids,” said NOVA chief executive Randy Woelfel.

Caiman chief executive Jack Lafield said, “We are pleased to be the first company committing volumes in support of such an important project for the producers and local workforce in the Marcellus Shale area.”

On 23 February, NOVA announced plans to buy and transport ethane from North Dakota via a proposed pipeline to Alberta, Canada.

By: Brian Ford
+1 713 525 2653

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