Total's Bayport Site to Add PE Unit in Venture with Borealis, Nova
Affiliates of Total S.A., Borealis AG and NOVA Chemicals Corp. have signed definitive agreements to form a petrochemicals joint venture on the U.S. Gulf Coast, Total reported Monday.
Total and Novealis Holdings LLC, a Borealis-NOVA JV, will each own a 50-percent stake in the Gulf Coast venture, Total stated, adding that the petchems JV will commence subject to receipt of regulatory approvals and other closing conditions. In addition, Total announced that the JV will include:
- The 1 million tons (2.2 billion pounds) per year ethane steam cracker that Total is building alongside its Port Arthur refinery and the existing Total/BASF steam cracker. According to Total, the $1.7 billion project is slated to start up in 2020 and will create approximately 1,500 jobs during peak engineering and construction activity.
- Total’s existing 400,000 tons (880 million pounds) per year polyethylene (PE) facility in Bayport, Texas
- A new 625,000 tons (1.35 billion pounds) per year Borstar PE unit at Total’s site in Bayport, Texas, following a decision on the outcome of an acceptable engineering, procurement and construction contract.
“This agreement is a key milestone for this integrated petrochemicals project,” remarked Bernard Pinatel, Refining and Chemicals president with Total. “This joint venture is aligned with Total’s strategy to strengthen our position by taking advantage of low-cost U.S. gas.”
The Gulf Coast JV also affords Borealis the opportunity to introduce its products into a new market, noted that company’s chief executive.
“Not only are we convinced of the excellent cost-economics of this integrated brownfield investment project, but we are also excited to bring our unique product grades based on our Borstar technology to the North American market,” stated Borealis CEO Mark Garrett.
NOVA Chemicals CEO Todd Karran pointed out the JV will help his company to broaden its reach.
“A key component of NOVA Chemicals’ growth strategy is to expand beyond our traditionally Canadian footprint by extending our presence in the U.S. Gulf Coast,” noted Karran. “Partnering with Total and Borealis will allow us to better serve our customers throughout the Americans by delivering a broader slate of products that help make everyday life healthier, easier and safer.”
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