Total, Novealis form 50-50 petrochemicals JV in US

Total, Novealis to form 50-50 petrochemicals JV in US

4:40 AM, 20th February 2018
Petrochemical project at Total’s Port Arthur in Texas, US.
Petrochemical project at Total’s Port Arthur in Texas, US.

PARIS-VIENNE, FRANCE/ CALGARY, CANADA: Total SA (Total), Borealis AG (Borealis) and Nova Chemicals Corporation (NOVA Chemicals) have signed definitive agreements to form a joint venture (JV) in petrochemicals on the US Gulf Coast.

The joint venture – in which Total will own 50 percent and Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals, will own the remaining 50 percent.

The joint venture will include:

The under-construction 1 metric tonne per year (2.2 b lb) ethane steam cracker in Port Arthur, Texas

Total’s existing polyethylene 400 kiloton per year (880 m lb) facility in Bayport, Texas

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 acceptable engineering, procurement and construction (EPC) contract.

As announced in March 2017, the new $1.7 billion ethane steam cracker is being built alongside Total’s Port Arthur refinery and Total/BASF 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.

“This agreement is a key milestone for this integrated petrochemical project. This JV is aligned with Total’s strategy to strengthen our position by taking advantage of low-cost US gas. 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,” said Bernard Pinatel, president, refining & chemicals, Total.

“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,” said Mark Garrett, CEO, Borealis. 

“A key component of Nova Chemicals’ growth strategy is to expand beyond our traditionally Canadian footprint by extending our presence in US Gulf Coast. 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,” added Todd Karran, CEO, Nova Chemicals.

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