A subsidiary of US midstream company Enterprise Products Partners has bough Nova Chemicals Corporation’s ethylene storage business and trading hub in Mont Belvieu, Texas, US.
Nova is one of the largest merchant ethylene producers and marketers on the US Gulf Coast, and the company will be a long-term storage customer in the Enterprise system. The hub, which has been operational since 2001, is the largest ethylene market hub in Texas, and has an underground storage cavern with a capacity of 308 million pounds (140,000 tonnes). Chris D’Anna, senior vice president, petrochemicals of Enterprise’s general partner, says that the acquisition will complement the company’s growing ethylene network.
‘The combined system offers multiple benefits for producers, consumers and traders, such as increased physical connectivity, greater market liquidity and pricing transparency, as well as improved access to Enterprise’s ethylene midstream services, including our export terminal and growing Gulf Coast pipeline system,’ he adds.
John Thayer, senior vice president sales and marketing for Nova Chemicals says that selling the hub will allow Nova to focus on its core business of ethylene and polyethylene production.