NOVA Chemicals to build new polyethylene lines in Canada, expand ethylene output

30-Jun-11

Nova Chemicals Corp. will build two new, major polyethylene production lines in Canada to take advantage of newfound supplies of oil and natural gas in the region. As a part of a strategy to capitalize on emerging feedstock opportunities and growing North American demand, NOVA Chemicals said it has begun feasibility and engineering work for the construction of two new polyethylene (PE) assets to be located at its sites in Alberta and Ontario. NOVA will also complete studies for a further debottleneck of its low-density polyethylene (LDPE) line located at its Mooretown, Ontario facility. The new polyethylene assets consist of a world-scale advanced SCLAIRTECH technology-based line, and a world-scale NOVAPOL technology-based linear-low density (LLDPE) line. “As an integral part of International Petroleum Investment Company’s (IPIC’s) global growth plans, we are very excited about the planned expansion of NOVA Chemicals’ position in North America,” said Khadem Al Qubaisi, managing director of IPIC and chairman of NOVA Chemicals. The completion of all engineering and feasibility studies is expected by mid-2012, and start-up of the debottleneck project and polymer expansions is targeted between late 2014 and 2017. “We are committed to leadership in the markets we serve. Our ability to meet our customers’ needs for higher performance polyethylene products is fundamental to this commitment. Growing our advanced SCLAIRTECH technology capability - the core of our technology base - together with our proprietary gas-phase capacity, will deliver real value for our customers,” said Randy Woelfel, CEO of NOVA Chemicals. In support of polyethylene expansions, ethylene supply growth will be derived from the increased utilization of existing Joffre cracker capacity, along with expansion of the Corunna cracker. This planned increase in ethylene production will be supported by emerging, cost-competitive feedstock supply from a diverse portfolio of new feedstock sources, linked to both shale oil and shale gas development, oil sand upgrading off-gases and expansion in supply from conventional ethane extraction capacity. The company said that as an update for the conversion of the Corunna, Ontario olefins cracker, detailed engineering and field tie-in preparation work is progressing well, in line with the goal of reaching full NGL feed capability by the end of 2013.