NOVA, Statoil enter agreement for ethane from US Marcellus shale

26 July 2011 23:36  [Source: ICIS news]

HOUSTON (ICIS)--Canadian chemical manufacturer NOVA Chemicals has signed a memorandum of understanding with the US subsidiary of Norway’s state-run Statoil for a long-term supply of ethane from the Marcellus shale formation in the US, NOVA said on Tuesday.

“We are very pleased to be working with Statoil for the supply of additional ethane to our Corunna, Ontario cracker,” said NOVA CEO Randy Woelfel. “Their supply will help to diversify our supply base for our Corunna cracker revamp project and support our growth plans in the future.”

The agreement is subject to the completion of a pipeline transportation project that would transport ethane from the Marcellus into the Sarnia, Ontario, petrochemical market.

NOVA also has a memorandum of understanding with US natural gas gathering and processing company Caiman Energy to buy up to 20,000/bbl of ethane from a gas processing plant in West Virginia to help feed NOVA’s Corunna cracker at Sarnia, Ontario.

NOVA and Statoil were unavailable for comment.

For more on NOVA visit ICIS company intelligence

By: Bobbie Clark
+1 713 525 2653

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