From www.theobserver.ca The Observer
Nova Chemicals has taken another critical step in ensuring the long-term future of its Corunna “cracker” unit as well as possible future expansion in the area.
The company said Tuesday it has entered into three core agreements to use ethane feedstock from the Marcellus Shale Basin in the U.S.
“We are excited to have these critical pieces in place,” CEO Randy Woelfel said in a release, noting the company is on track to have the project — including facility upgrades — completed by the end of 2013.
The three new agreements are with:
• Sunoco Pipeline L.P. for the transportation of ethane feedstock from the Marcellus Shale Basin to the Sarnia area.
• Caiman Energy, LLC, for long-term ethane supply from the basin, and
• A wholly owned subsidiary of Range Resources Corporation, also for long-term ethane supply.
The company said it is working with other producers in the Marcellus region, including Statoil Marketing and Trading Inc., to secure additional feedstock for the Corunna cracker.
Woelfel said the revamp, which is still subject to regulatory approvals, would position Nova’s Ontario assets for further growth in the polyethylene market.
Observer Article ID #3286941
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