Borealis AG and NOVA Chemicals Corporation ("NOVA Chemicals") have signed a preliminary agreement to form a joint venture (JV) with Total Petrochemicals and Refining USA, Inc. ("Total") that will develop and own a new light feed cracker and a new Borstar® polyethylene (PE) facility in Bayport, Texas.
Key aspects of the JV will include:
The JV is expected to be established in late 2017* and the final investment decision on the Borstar® PE plant will be taken simultaneously. The ethylene cracker and Borstar® PE plant are planned to start-up in late 2020.
The JV will create significant synergies by enabling strong integration of the value chain and the first-time use of the proprietary Borstar® PE process technology in the Americas. It will also provide competitive export access to markets outside of North America to help meet the growing global demand for PE.
"Working in a JV with NOVA Chemicals and Total on a cost-effective brownfield investment project, integrated with a cracker, is an attractive opportunity. We can also leverage our proven technology and benefit from large scale experience gained in other projects (e.g. Borouge) and develop the project together with NOVA Chemicals," said Borealis CEO Mark Garrett.
"This opportunity will complement NOVA Chemicals’ existing asset structure in Canada and broaden our PE product slate as we continue to grow our business in the Americas to deliver products that make everyday life healthier, safer and easier," stated Todd Karran, President and CEO, NOVA Chemicals. "It also paves the way for NOVA Chemicals to collaborate further with Borealis as part of the IPIC family of companies," continued Karran.
* Pending regulatory approvals