Total/Borealis/Nova jv for petchem project on US Gulf Coast

French multinational integrated oil and gas company Total, Austrian polyolefins maker Borealis and Canadian chemicals provider Nova Chemicals Corporation have signed a definitive agreements to form a joint venture in petrochemicals on the US Gulf Coast.

The joint venture – in which Total will own 50% and Novealis Holdings, a joint venture between Borealis and Nova Chemicals, will own the remaining 50% – will commence subject to customary closing conditions, including receipt of regulatory approvals.

The joint venture will include:

As announced in March 2017, the new US$1.7 billion ethane steam cracker is being built alongside Total’s Port Arthur refinery and Total/BASF’s 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.

“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,” said Bernard Pinatel, President, Refining & Chemicals, Total. “We look forward to working with Borealis and Nova Chemicals to create world-class facilities and become a major player in the growing US and global market for polyethylene.”

“The JV with Total and Nova Chemicals is a key project in advancing our global growth. Not only are we convinced of the excellent cost-economics of this integrated brownfield investment project, but we are also excited to bring our unique product grades based on our Borstar technology to the North American market,” said Borealis CEO Mark Garrett.

“A key component of Nova Chemicals’ growth strategy is to expand beyond our traditionally Canadian footprint by extending our presence in the US Gulf Coast,” stated Nova Chemicals CEO, Todd Karran. “Partnering with Total and Borealis will allow us to better serve our customers throughout the Americas by delivering a broader slate of products that help make everyday life healthier, easier and safer.”

Borealis currently has around 6,600 employees and operates in over 120 countries. Borealis generated EUR7.5 billion in sales revenue and a net profit of EUR1 billion in 2017. Mubadala, through its holding company, owns 64% of the company, with the remaining 36% belonging to Austria-based OMV, an integrated, international oil and gas company. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).

Total is a global integrated energy producer and provider, with 98,000 employees and operations in more than 130 countries worldwide.

Nova Chemicals headquartered in Calgary, Alberta, Canada, is wholly-owned, ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.

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(PRA)