New JV on petrochem

Total S.A., Borealis AG and NOVA Chemicals Corporation announced that affiliates of the three companies have signed definitive agreements to form a joint venture in petrochemicals on the U.S. Gulf Coast. The joint venture – in which Total will own 50% and Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals, will own the remaining 50% – will commence subject to customary closing conditions, including receipt of regulatory approvals.

 

The joint venture will include: the under-construction 1 Mt/y (2.2 b lb) ethane steam cracker in Port Arthur, Texas; Total’s existing polyethylene 400 kt/y (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 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’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.

 

The agreement is a key milestone for the integrated petrochemicals project and the int venture is aligned with Total’s strategy to strengthen its position by taking advantage of low-cost U.S. gas, according to Bernard Pinatel, President, Refining & Chemicals, Total.  

 

Borealis CEO Mark Garrett stressed that the joint venture is a key project in advancing Borealis' global growth and the company is also excited to bring its unique product grades based on Borstar technology to the North American market.   

 

A key component of NOVA Chemicals’ growth strategy is to expand beyond its traditionally Canadian footprint by extending its presence in the U.S. Gulf Coast, according to NOVA Chemicals CEO, Todd Karran.