Nova Chemicals gears up for expansion

By Paul Morden,  from www.theobserver.ca   The Observer

Nova Chemicals has a lot to talk about at a public open house it’s holding March 20 at the legion hall in Corunna.

The list includes a eight-kilometre pipeline Nova is seeking federal approval to build so it can move Marcellus shale ethane from an existing river crossing to the company’s Corunna plant.

Plus the company is studying expanding the plant’s ethylene production, increasing polyethylene production at its nearby Moore site, and building a new world-scale polyethylene plant in Sarnia-Lambton.

“It definitely is an exciting time for Nova’s eastern operations,” said spokesperson Rob Thompson.

The company is already at work converting the Corunna plant from using primarily oil-based feedstock to ethane.

Company officials said last year they expected that work to be completed for less than $250 million.

The pipeline project Nova is seeking regulatory approval for will allow it to connect to an existing valve site near La Salle Line and access ethane produced from the Marcellus Shale formation in the eastern U.S.

Nova also plans to build a shorter pipeline connecting its Corunna plant with the nearby Provident storage site.

“This emerging feedstock is an important opportunity to ensure our continued competitive economic viability, today and into the future,” Thompson said. “It’s a game changer.”

Ethane is less expensive, doesn’t have to be shipped as far and “it’s a cleaner technology in terms of the environmental impacts,” Thompson said.  “Our hope is that we would be utilizing the feedstock by 2013.”

Last year, Nova announced a 10-year strategy it calls “Nova 2020” and said it’s studying expanding ethylene production at Corunna, as well as looking at the feasibility of building a new world-scale polyethylene plant in the Sarnia area and boosting production at its existing Moore facility.

Ethylene is used to make polyethylene, a material found in shrink wrap, trash cans, automotive parts and other consumer products.

Decisions on whether or not to go ahead with the new plant, and other production expansions, are expected be made later this year, Thompson said.

The open house runs 5 p.m. to 8 p.m. at the Royal Canadian Legion hall on Albert Street in Corunna.

“Public consultation is obviously very important to us, through this whole process,” Thompson said.

The company wants to make sure “our neighbours are engaged and informed in the process,” he said.

“That’s why we wanted to talk openly about all our plans.”

Nova Chemicals’ three plant sites in Sarnia-Lambton employ about 900 people.

The company, headquartered in Calgary, is a wholly owned subsidiary of the International Petroleum Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.

Observer Article ID# 3492896

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