NOVA Chemicals and Williams announce letter of intent for project to extract ethane from Alberta oil sands
Pittsburgh, PA - NOVA Chemicals Corporation (NYSE, TSX: NCX) today announced it has reached an agreement with Williams (NYSE: WMB) to evaluate processing current and future off-gas streams from the Alberta oil sands to extract ethane. This feedstock would be delivered to NOVA Chemicals’ Joffre, Alberta, manufacturing facility, utilizing the existing Joffre Feedstock Pipeline.
“We’re very pleased to be the first petrochemical company to find a potential path to the economic recovery of ethane from the Alberta oil sands, which contain the second largest proven reserves of oil in the world,” said Chris Pappas, Chief Operating Officer of NOVA Chemicals. “This additional, cost-advantaged feedstock will help secure our foundation for additional growth in Alberta.”
Under the terms of a letter of intent, Williams would modify the existing oil sands off-gas liquids fractionation facility near Redwater, Alberta, to enable extraction of ethane and ethylene. This facility would be owned by Williams. NOVA Chemicals would be the exclusive, long-term customer for the project, which is expected to begin operating in stages starting as early as 2010. Williams is currently processing an off-gas liquids stream at Redwater for the production of propylene.
NOVA Chemicals produces plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible Care® to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX.
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