Total, Borealis, NOVA joint venture cracker in Texas already under construction

20 February 2018 16:47 Source:ICIS News

NEW YORK (ICIS)--The 1m tonne/year ethane cracker as part of the joint venture (JV) between Total, Borealis and NOVA Chemicals in Port Arthur, Texas, US, is already under construction, the companies confirmed on Tuesday.

“We have started the cracker’s construction... Total started by itself the construction of the side cracker, which will be part of the JV - as [will be] our existing PE (polyethylene) plant and the potential new PE plant - once we will have received the regulatory approvals,” a Total spokesperson told ICIS on 20 February.

The $1.7bn cracker is expected to start up in 2020, while a decision on the new 625,000 tonne/year Borstar polyethylene (PE) project in Bayport, Texas, is pending “an acceptable EPC contract”, said the companies in a 19 February statement.

Total’s existing 400,000 tonne/year high density PE (HDPE) plant in Bayport will be included in the joint venture.

Total, Borealis and NOVA Chemicals announced on 19 February that they officially signed an agreement to form a petrochemical joint venture in the US Gulf Coast, with Total owning a 50% stake.

The joint venture will commence subject to customary closing conditions, including receipt of regulatory approvals, the companies said.

Borealis and NOVA will own the remaining 50% stake through Novealis Holdings.

Plans to form a joint venture were announced in March 2017, but it was not indicated that construction of the cracker would start.

Construction of the cracker started in March, the Total spokesperson said on 20 February.

Additional reporting by Jonathan Lopez and Nigel Davis

By Joseph Chang