Nova Corp., Calgary, will spend $265.3 million in current deals to expand its natural gas and petrochemical operations in North America.
Nova will lay out $170 million (U.S.) for a 36.5% interest in Natural Gas Clearinghouse (NGC), Houston. The companies will set up a new equal partnership company Novagas Clearinghouse Ltd., in Calgary to provide gas trading and services.
Nova said it is familiar with NGC through its 50% interest in Pan Alberta Gas Ltd., Calgary, which has dealt extensively with the U.S. firm.
British Gas plc owns a 36.5% interest in NGC, and NGC management holds the remaining 17%.
In other action, Novacor Chemicals Ltd., a wholly owned unit of Nova, signed a letter of intent to buy the polyethylene business in Canada of DuPont Canada Inc.
The deal includes $45 million for a DuPont polyethylene plant at Sarnia, Ont., and $35 million in working capital for inventories, DuPont's trademark Sclair and world licensing of its Sclairtech business.
Acquisition of DuPont's 227,000 metric ton/year plant will increase Novacor's polyethylene production to 1 million metric tons/year.
Nova also agreed to pay $15.3 million for a natural gas pipeline operated by Alberta Natural Gas Co. in the Peace River area of Alberta. The 47 mile line will continue to serve existing customers but will also be used as a link to new gas reserves east of Peace River.
The sale was scheduled to close Dec. 30.
Earlier in December, Nova disclosed it had made a deal to trade three methanol plants at Medicine Hat, Alta., for a 24% interest in Methanex Corp., Vancouver, B.C. The deal is worth about $190 million (U.S.)
Nova recently sold its 50% interest in the Trans Quebec & Maritimes Pipeline for $52 million and Novalta Resources Ltd., its exploration unit, for $275 million.
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