Canada's NOVA signs memo of understanding to secure US ethane

02 May 2011 22:37  [Source: ICIS news]

HOUSTON (ICIS)--Canada-based NOVA Chemicals signed a memorandum of understanding (MoU) to secure ethane supplies from the Marcellus Shale, the company said on Monday.

A subsidiary of Range Resources will supply the ethane, NOVA said. The feedstock will go to NOVA's cracker in Corunna, Ontario.

Before the arrangement can become effective, NOVA needs to close on a pipeline-transportation agreement, so the ethane could be shipped to Corunna.

The arrangement with Range is one of several that NOVA has made to secure feedstock.

Earlier this year, NOVA signed a feedstock supply agreement with a subsidiary of Williams for a mix of ethane and ethylene to be extracted from off-gas produced at oil sands upgrading facilities.

NOVA also had  made an ethane supply agreement with Caiman Energy. The ethane will also come from the Marcellus Shale.

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

For more on ethylene visit ICIS chemical intelligence
For more on NOVA visit ICIS company intelligence

By: Al Greenwood
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