Nova Chemicals enters into transportation and supply agreements for ethane feedstock from Marcellus Shale Basin to its Sarnia, Ontario, cracker

CALGARY , September 6, 2011 (press release) – NOVA Chemicals today announced that it has entered into three core agreements which support the revamp of its Corunna cracker to utilize up to 100% NGL feedstock:

· a transportation service agreement with Sunoco Pipeline L.P. for the transportation of ethane feedstock from the Marcellus Shale Basin into the Sarnia, Ontario region;

· a definitive agreement for long-term ethane supply from the Marcellus Shale Basin with Caiman Energy, LLC; and

· a definitive agreement for long-term ethane supply from the Marcellus Shale Basin with a wholly-owned subsidiary of Range Resources Corporation.

“We are excited to have these critical strategic pieces in place,” said Randy Woelfel, Chief Executive Officer. “The capital project enabling our Corunna cracker to utilize up to 100% NGLs is on target, and we anticipate seeing all three project initiatives – safe, reliable pipeline transportation, ethane supply and facility upgrades – come together before the end of 2013.”

The company continues to work with other producers in the Marcellus region, including Statoil Marketing and Trading Inc., to secure additional ethane feedstock for its Corunna cracker.

“The revamp of the Corunna cracker is step one in our ‘NOVA 2020’ vision and will position our Ontario assets as a highly competitive, robust platform that can drive further polyethylene growth,” added Woelfel.

The proposed projects are subject to receipt of customary regulatory and other approvals.

About NOVA Chemicals Corporation

NOVA Chemicals develops and manufactures chemicals, plastic resins and end-products that make everyday life safer, healthier and easier. Our employees work to ensure health, safety, security and environmental stewardship through our commitment to sustainability and Responsible Care®. NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is a wholly owned subsidiary of the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi.

Visit NOVA Chemicals on the Internet at www.novachemicals.com.


* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.