Williams Cos. inks deal to supply ethane and ethylene to Nova Chemicals Corp

29-Mar-11

Nova Chemicals Corporation has signed a long-term agreement with a subsidiary of Williams for a feedstock supply of an ethane/ethylene mix to be extracted from off-gas produced at oil sands upgrading facilities located at Fort McMurray and Redwater, Alberta. Under the terms of the agreement, Williams will produce, for NOVA Chemicals, up to 17,000 bpd of an ethane/ethylene mix which will be transported via the Joffre Feedstock Pipeline to NOVA Chemicals’ Joffre, Alberta petrochemical facilities. This feedstock source will enhance and diversify NOVA Chemicals’ feedstock supplies beyond traditional sources derived from Alberta-based natural gas exports. “We are excited with this development and pleased to be working with Williams who has oil sands off-gas experience and facilities in the region. Securing this additional feedstock source for our facilities in western Canada will further support competitive polyethylene production for many years to come, while setting ourselves up for future growth.” said Randy Woelfel, NOVA Chemicals’ Chief Executive Officer. “This would not have been possible without the Alberta government’s value-add vision, the appointment of the Alberta Competitiveness Task Team on Petrochemicals, and the commitment to modify the Incremental Ethane Extraction Program (IEEP) to facilitate new, diversified sources of competitively-priced feedstock in Alberta.”