Total, Nova, and Borealis advance proposed USGC petchem combine
Affiliates of France’s Total SA, Austria’s Borealis AG, and Canada’s Nova Chemicals Corp. have signed definitive agreements to form a joint venture that would combine certain of the companies’ existing and future petrochemical operations along the US Gulf Coast.
Total will hold a 50% interest in the JV, while Novealis Holdings LLC—an established JV between Borealis and Nova Chemicals—will own the remaining 50% stake in the yet-to-be-named entity, the companies said.
As previously announced, partners in the new JV will jointly own the 1 million-tonne/year ethane steam cracker under construction at Total’s 178,000-b/d integrated refining complex in Port Arthur, Tex., Total’s existing 400,000-tpy polyethylene (PE) production plant in Bayport, Tex., and the earlier announced 625,000-tpy PE plant based on Borealis’ proprietary Borstar PE process proposed for Total’s Bayport petrochemical production site (OGJ Online, Mar. 27, 2017).
Last year, Total’s Houston-based subsidiary Total Petrochemicals & Refining USA Inc. let a $1.3-billion contract to CB&I, Houston, to provide engineering, procurement, and construction services for the long-planned grassroots Port Arthur steam cracker just a day after Total, Nova Chemicals, and Borealis announced the preliminary partnership agreement (OGJ Online, Mar. 28, 2017).
At a total investment cost of $1.7 billion, the new ethane steam cracker at Port Arthur remains on schedule for startup in 2020.
The three companies, however, have yet to finalize an EPC contract for the planned Bayport Borstar PE unit, Total said.
Total previously said, if approved, the Bayport PE unit also would reach startup in late 2020.
With the companies still are awaiting regulatory approvals before finalizing the new JV, the proposed partnership Intends to help meet growing global demand for PE by taking advantage of competitively priced ethane feedstock from US shale production and easy export access to markets abroad, as well as enable Total, Nova Chemicals, and Borealis to leverage existing synergies to help further integrate and expand their respective businesses in the Americas, the operators said.
Contact Robert Brelsford at [email protected].
