Affiliates of Total, Borealis and NOVA Chemicals, have announced that an agreement has been signed to form a joint venture in petrochemicals on the US Gulf Coast.
The joint venture will include the under-construction 1 Mt/y (2.2 b lb) ethane steam cracker in Port Arthur, Texas and Total’s existing polyethylene 400 kt/y (880 m lb) facility in Bayport, Texas. As well as a new 625 kt/y (1.35 b lb) Borstar polyethylene unit at Total’s Bayport, Texas site, following a decision on the outcome of an EPC contract.
“This agreement is a key milestone for this integrated petrochemicals project. This joint venture is aligned with Total’s strategy to strengthen our position by taking advantage of low-cost US gas,” said Bernard Pinatel, President, Refining and Chemicals, Total.
“We look forward to working with Borealis and NOVA Chemicals to create world-class facilities and become a major player in the growing US and global market for polyethylene.”
Announced in March 2017, the new $1.7 billion (€1.4 billion) ethane steam cracker is being built alongside Total’s Port Arthur refinery and Total/BASF’s existing steam cracker.
The project, which is scheduled to start up in 2020, will create around 1,500 jobs during peak engineering and construction activity.
Mark Garrett, CEO of NOVA Chemicals, explained: “The JV with Total and NOVA Chemicals is a key project in advancing our global growth. Not only are we convinced of the excellent cost-economics of this integrated brownfield investment project, but we are also excited to bring our unique product grades based on our Borstar technology to the North American market.”
Total will own 50 per cent and Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals, will own the remaining 50 per cent.
“A key component of NOVA Chemicals’ growth strategy is to expand beyond our traditionally Canadian footprint by extending our presence in the U.S. Gulf Coast,” added, Todd Karran, CEO of NOVA Chemicals.
“Partnering with Total and Borealis will allow us to better serve our customers throughout the Americas by delivering a broader slate of products that help make everyday life healthier, easier and safer.”
