Nova ordered to pay Dow an additional US$1.2 bn for ethylene dispute
A Canadian court has ordered Canada-based chemical firm Nova Chemicals to pay US materials firm Dow an additional amount of US$1.2 billion in damages incurred from the companies’ jointly owned ethylene asset in Joffre, Alberta, Canada. Payment is anticipated to occur in the fourth quarter of 2025.
The award includes interest to 7 April 2025, but excludes subsequent interest or legal costs.
This latest ruling and award of damages to Dow is in addition to a prior payment by Nova to Dow of US$$1.08 billion in damages in 2019 following a June 2018 decision.
That decision found Nova had failed to operate the jointly owned ethylene asset at full capacity and had breached contractual obligations since 2001, resulting in reduced ethylene to Dow.
On appeal, the court directed that Dow's damages be recalculated for the period from 2001 through 2012, as well as for the period from 2013 through June 2018, which had not yet been quantified.
The judgment is subject to appeal.
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