French Total, Vienna-based Borealis, and Canadian NOVA Chemicals announced that affiliates of the three companies have signed definitive agreements to form a joint venture in petrochemicals on the US Gulf Coast. Under the joint venture, Total will own 50% and Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals, will own the remaining 50%.
The joint venture will include the under-construction 1 Mt/y (2.2 b lb) ethane steam cracker in Port Arthur, Texas, Total’s existing polyethylene 400 kt/y (880 m lb) facility in Bayport, Texas, and a new 625 kt/y (1.35 b lb) Borstar polyethylene unit at Total’s Bayport, Texas, site, following a decision on the outcome of an acceptable EPC contract.
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The new $1.7 billion ethane steam cracker is being built alongside Total’s Port Arthur refinery and Total/BASF existing steam cracker. The project, which is scheduled to start up in 2020, will create around 1,500 jobs during peak engineering and construction activity.
Bernard Pinatel, President, Refining & Chemicals, Total, said:
This agreement is a key milestone for this integrated petrochemicals project. This joint venture is aligned with Total’s strategy to strengthen our position by taking advantage of low-cost U.S. gas. We look forward to working with Borealis and NOVA Chemicals to create world-class facilities and become a major player in the growing U.S. and global market for polyethylene.
The JV will commence subject to customary closing conditions, including receipt of regulatory approvals.
