NOVA Chemicals has entered into three core agreements which support the revamp of its Corunna cracker to utilize up to 100% NGL feedstock. The first one is a transportation service agreement with Sunoco Pipeline L.P. for the transportation of ethane feedstock from the Marcellus Shale Basin to the Sarnia, Ontario region. The second one being a definitive agreement for long-term ethane supply from the Marcellus Shale Basin with Caiman Energy, LLC and the third one is a definitive agreement for long-term ethane supply from the Marcellus Shale Basin with a wholly-owned subsidiary of Range Resources Corporation.
“We are excited to have these critical strategic pieces in place,” said Randy Woelfel, Chief Executive Officer. “The capital project enabling our Corunna cracker to utilize up to 100% NGLs is on target, and we anticipate seeing all three project initiatives – safe, reliable pipeline transportation, ethane supply and facility upgrades – come together before the end of 2013.”
The company continues to work with other producers in the Marcellus region, including Statoil Marketing and Trading Inc., to secure additional ethane feedstock for its Corunna cracker. “The revamp of the Corunna cracker is step one in our ‘NOVA 2020’ vision and will position our Ontario assets as a highly competitive, robust platform that can drive further polyethylene growth,” added Woelfel