Enterprise acquires NOVA Chemicals’ Texas ethylene storage, trading hub

Enterprise Products Partners LP has completed purchase of NOVA Chemicals Corp.’s 308-million lb underground ethylene storage cavern and trading hub (NOVA Hub)—the primary transaction point for spot ethylene trade at the US Gulf Coast—in Mont Belvieu, Tex.

Acquisition of the NOVA Hub comes as part of Enterprise’s strategy to grow its existing own ethylene network in the region, Chris D’Anna, senior vice-president of petrochemicals for Enterprise’s general partner, said on July 1.

“The combined [NOVA Hub] system offers multiple benefits for producers, consumers, and traders, such as increased physical connectivity, greater market liquidity, and pricing transparency, as well as improved access to Enterprise’s ethylene midstream services, including our export terminal and growing USGC pipeline system,” D’Anna said.

John Thayer, NOVA Chemicals’ senior vice-president of sales and marketing, said the decision to shed the Mont Belvieu ethylene storage and trading business represented the best long-term solution for the hub’s future as the company increasingly focuses on its core business of ethylene and polyethylene production.

Despite the change in ownership, NOVA Chemicals will remain a long-term storage customer in the Enterprise system, the companies said.

Further details regarding the transaction were not disclosed.