NOVA Chemicals Corporation (NOVA Chemicals) today announced its decision to move forward with the second phase of its NOVA 2020 growth strategy in Ontario, Canada, and to continue to evaluate options for a second Advanced SCLAIRTECHTM technology (AST) facility.
This next phase of the NOVA 2020 growth strategy, anticipated to take place over the 2014 to 2018 timeframe, will concentrate on several cost-effective expansions and upgrades to NOVA Chemicals' existing facilities in the Sarnia, ON region, including:
· Expanding the Corunna cracker ethylene manufacturing capacity by approximately 20%;
· Pursuing a debottleneck at the Moore low-density polyethylene (PE) line; and
· Pursuing a retrofit of the Moore high-density PE line.
These projects are intended to build on the impact of the Corunna cracker conversion to utilize up to 100% natural gas liquids (NGLs) to enhance NOVA Chemicals' capabilities to meet growing and more sophisticated customer demands.
During this period, NOVA Chemicals will continue to investigate options for a second AST facility, which could be located in Ontario, the U.S. Gulf Coast or elsewhere in the world, and which would be implemented in the final phase of the NOVA 2020 growth strategy.
"We are excited to move forward with the next phase of growth for our Eastern Canadian Olefins and PE assets, building on the imminent completion of our Corunna feedstock conversion project. In parallel with the planned implementation of these projects, which could represent investment exceeding $300 million, we will continue to investigate options for a second AST facility," stated NOVA Chemicals CEO Randy Woelfel. "We believe phasing of implementation of the NOVA 2020 projects is the optimal path forward to maintain NOVA Chemicals' financial strength and optionality while recognizing the market challenges for project implementation."
Work continues to progress on other projects within the first phase of the NOVA 2020 portfolio, including:
· Revamping the Corunna, Ontario cracker facility to utilize cost-competitive NGL feedstocks with project completion targeted for Q1 2014. Ethane from the Marcellus Shale Basin is currently accumulating in local Sarnia storage for introduction as a Corunna feedstock shortly; and
· Building a world-scale gas-phase PE reactor at the Joffre, Alberta facility, to provide customers with a complete set of LLDPE offerings, which is expected to be mechanically complete in Q1 2016
