Nova Chemicals in US$2.1 bln deal to buy Williams Partners LP's stake in Geismar olefins plant

18-Apr-17

Canada-based NOVA Chemicals Corp. has reached a US$2.1 bln deal to buy Williams Partners LP's 88.46% ownership of an olefins plant producing approximately 1.95 billion lbs of ethylene annually at Geismar. The deal also encompasses 525 undeveloped acres next to the facility and Williams' piece of an ethylene trading hub in Mount Belvieu, Texas. NOVA expects to complete the acquisition this summer. NOVA and Williams also will sign a long-term contract for Williams to transport and supply ethane feedstock to support the plant.

Todd Karran, president and chief executive officer of NOVA, said the acquisition allows the company to enlarge its geographic footprint and benefit from access to "significant U.S. shale gas reserves" and a well-established petrochemical and supply chain infrastructure. A key component of our growth strategy is to expand to the U.S. Gulf Coast and leverage next generation technology to better serve our customers in the Americas."