Borealis and Nova Chemicals enter jv deal with Total for PE expansions

Borealis and Nova Chemicals signed a preliminary agreement to form a joint venture (jv) with Total Petrochemicals and Refining USA that will develop and own a new light feed cracker and a new Borstar polyethylene (PE) facility in Bayport, Texas.

Key aspects of the JV will include building a new 1000 ktpa ethylene cracker in Port Arthur, Texas; building a new 625 ktpa Borstar PE plant in Bayport, Texas; Total's existing Bayport PE facility, total capacity 400 ktpa .

The jv is expected to be established in late 2017 and the final investment decision on the Borstar PE plant will be taken simultaneously. The ethylene cracker and Borstar PE plant are planned to start-up in late 2020.

The jv will create significant synergies by enabling strong integration of the value chain and the first-time use of the proprietary Borstar PE process technology in the Americas. It is expected to provide competitive export access to markets outside of North America to help meet the growing global demand for PE.

"Working in a jv with Nova Chemicals and Total on a cost-effective brownfield investment project, integrated with a cracker, is an attractive opportunity. We can also leverage our proven technology and benefit from large scale experience gained in other projects (e.g., Borouge) and develop the project together with Nova Chemicals," said Borealis CEO Mark Garrett.

The project will complement Nova Chemicals's existing asset structure in Canada and grow its PE product business in the Americas, added Todd Karran, President and CEO of Nova Chemicals.