NOVA weighs US Gulf, Canada ethylene to supply possible PE plant

07 May 2013 21:18  [Source: ICIS news]

NOVA weighs US Gulf, Canada ethylene to supply possible PE plantHOUSTON (ICIS)--NOVA Chemical may complete the first polyethylene (PE) plant among the wave of projects that could come on line in the upcoming years, the result of North America's shale-gas boom, the CEO said on Tuesday.

NOVA Chemicals is building a 1bn lb/year (454,000 tonne/year) linear low density PE (LLDPE) plant at its site in Joffre, Alberta.

The company already has approved funding to build the plant, said Randy Woelfel, NOVA CEO. Woelfel made his comments during an earnings conference call.

The $1bn (€760m) cost includes an expanded rail yard, coolant towers and an electrical substation as well as the actual reactor for the new plant, Woelfel said.

Operations should start in late 2015, he said. "That should be well ahead of most other North American PE projects under development."

The plant could be the first among a wave of PE plants that producers have announced, all of which are eager to take advantage of North America's feedstock advantage.

Most North American crackers rely on natural gas liquids (NGLs) as a feedstock, the supply of which is growing because of the advent of shale gas.

Much of the world relies on naphtha, which is derived from oil.

Consequently, North American producers have benefitted from a cost advantage.

NOVA has aggressively pursued these new sources of North American feedstock since early this decade. Already, the company has signed agreements to secure NGLs from the Marcellus Shale as well as associated gas from the Williston basin in North Dakota, an area producing substantial amounts of shale oil.

($1 = €0.76)


By: Al Greenwood
+1 713 525 2645



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index