Nova Chemicals and Sunoco Partners Marketing & Terminals are pursuing a potential joint venture to develop an ethylene export storage terminal on the US Gulf Coast.
Both companies have entered into a non-binding memorandum of understanding over the potential joint venture and will seek market commitment for an anticipated start-up of the terminal by mid-2020. The facility is expected to have the capability to export 1.8 billion pounds per year of ethylene to the global market.
The project would connect the Lone Star NGL Mont Belvieu storage facility at Mont Belvieu, Texas, where the Nova ethylene hub operates, and the Louisiana ethylene market to the export facility via existing pipelines already approved for ethylene transportation.
The project would provide significant value by linking low-cost US Gulf Coast ethylene production to derivative plants around the world.
The proposed JV is subject to sufficient market interest and customary conditions and approvals, including completion of definitive agreements and approval of Nova Chemicals board of directors.
Naushad Jamani, senior vice president, olefins & feedstock for Nova Chemicals, says: ‘An ethylene export terminal builds upon Nova Chemicals’ leadership position in the continually expanding North American ethylene industry.
‘Together with the 2017 acquisition of our interest in the Geismar, Louisiana Olefins facility and our recently announced proposed joint venture in Texas with Total and Borealis, this project would further extend Nova Chemicals’ presence in the US Gulf Coast, allowing us to better serve our customers in the Americas.’