Borealis and Nova Chemicals Corporation signed a preliminary agreement to form a joint venture with Total Petrochemicals and Refining USA that will develop and own a new light feed cracker and a new Borstar polyethylene facility in Bayport, Texas.
Vienna/Austria — The Joint Venture is expected to be established in late 2017 and the final investment decision on the Borstar PE plant will be taken simultaneously, Borealis announced. The ethylene cracker and plant are planned to start-up in late 2020.
The companies expect the joint venture to create significant synergies by enabling strong integration of the value chain and the first-time use of the proprietary Borstar PE process technology in the Americas. It would also provide competitive export access to markets outside of North America to help meet the growing global demand for PE.
"Working in a joint venture with Nova Chemicals and Total on a cost-effective brownfield investment project, integrated with a cracker, is an attractive opportunity. We can also leverage our proven technology and benefit from large scale experience gained in other projects (e.g. Borouge) and develop the project together with Nova Chemicals," said Borealis CEO Mark Garrett.
"This opportunity will complement Nova Chemicals' existing asset structure in Canada and broaden our PE product slate as we continue to grow our business in the Americas to deliver products that make everyday life healthier, safer and easier," stated Todd Karran, President and CEO, Nova Chemicals. "It also paves the way for Nova Chemicals to collaborate further with Borealis as part of the Ipic family of companies," continued Karran.
Key Aspects of the Joint Venture:
- building a new 1,000 ktpa (2.2 b lb) ethylene cracker in Port Arthur, Texas
- building a new 625 ktpa (1.35 b lb) Borstar PE plant in Bayport, Texas
- Total's existing Bayport PE facility, total capacity 400 ktpa (880 m lb)