Borealis and Nova Chemicals have signed a preliminary agreement with Total Petrochemicals and Refining to form a joint venture to develop a new light feed cracker and a polyethylene plant in Bayport, Texas.
The venture will see construction of a 1000 ktpa ethylene cracker in Port Arthur, Texas, and a 625 ktpa Borstar PE plant in Bayport, Texas.
Mark Garrett, Borealis CEO, said: “Working in a JV 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 and develop the project together with NOVA Chemicals.”
total
Image : Total Polymers Antwerp (Photo: © Michel Clinckemaille)
Todd Karran, President and CEO, NOVA Chemicals, said: “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.
“It also paves the way for NOVA Chemicals to collaborate further with Borealis as part of the IPIC family of companies.”
The JV is expected to be established in late 2017 and the final investment decision on the Borstar PE plant will be taken simultaneously. The ethylene cracker and Borstar PE plant are planned to start-up in late 2020.
The companies say the JV will 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 will also provide competitive export access to markets outside of North America to help meet the growing global demand for PE.