Texas troika sign agreement for new crackers in the Gulf of Mexico

Total, Borealis and NOVA Chemicals have agreed to start a joint venture for petrochemicals, scheduled to start in 2020, the cracker expansions could create around 1,500 jobs during engineering and construction stages.

The joint venture will include a megaton per year ethane steam cracker in Port Arthur, Texas; Total’s existing polyethylene 400 kiloton facility in Bayport, Texas, and a new 625 kiloton polyethylene unit at Total’s site in Bayport, Texas.

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’s existing steam cracker.

Bernard Pinatel, President of Refining and Chemicals, Total, said: “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 U.S. gas. We look forward to working with Borealis and NOVA Chemicals to create world-class facilities and become a major player in the growing U.S. and global market for polyethylene.”

Todd Karran, NOVA Chemicals CEO, said: “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… 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.”