NOVA Chemicals seals Marcellus feedstock deals for cracker revamp

06 September 2011 14:47 Source:ICIS News

TORONTO (ICIS)--NOVA Chemicals has agreed three ethane sourcing deals to support a project to revamp its cracker in Corunna, Ontario, to utilise up to 100% natural gas liquids (NGL) feedstock, the Canadian petrochemicals major said on Tuesday.

NOVA said it has signed a transportation service agreement with Sunoco Pipeline to ship ethane feedstock from the US Marcellus shale gas region to Ontario.

In addition, NOVA has signed “definitive agreements” for long-term ethane supply from the Marcellus region with Caiman Energy, and Range Resources, it said.

“The capital project enabling our Corunna cracker to utilise up to 100% NGLs is on target, and we anticipate seeing all three project initiatives –  safe, reliable pipeline transportation, ethane supply and facility upgrades – come together before the end of 2013,” said CEO Randy Woelfel.

In addition, NOVA continues to work with other producers in the Marcellus region, including Statoil, to secure additional ethane feedstock for the Corunna cracker, Woelfel said.

The revamp of the Corunna cracker will position NOVA’s Ontario assets as “a highly competitive, robust platform” in polyethylene (PE) markets, he added.

The Corunna site processes crude oil, condensate and NGLs.

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By Stefan Baumgarten