In what can be regarded as a major move in consolidating their position in the global bulk & specialty chemicals industry, the affiliates of Borealis, Total, and NOVA Chemicals have inked a definitive agreement to form a petrochemical joint venture on the US Gulf Coast.
Sources reveal that the French oil major Total, with 50%, will hold the major share in the joint venture, while Novealis Holdings, the JV between Nova and Borealis will hold the remaining 50%.
Bernard Pinatel, Total’s refining & chemicals president was quoted stating that the agreement between the bulk & specialty chemicals industry majors have marked a key milestone for the integrated petrochemicals project. He further added that the JV is aligned with the company’s strategy to fortify its position in the growing polyethylene market and create world-class facilities by leveraging the potential of Borealis and Nova Chemicals.
In a company statement, Todd Karran, CEO of NOVA Chemicals said that through this partnership with Borealis and Total, NOVA is likely to deliver a wider slate of products in turn helping the firm to better serve the customers spanning across the Americas.
According to reliable reports, the Total-Novealis Holdings joint venture will include – Total’s existing polyethylene facility of 400 kt/y in Bayport, Texas; the USD 1.7 billion, 1 Mt/y under-construction ethane steam cracker in Port Arthur, Texas; & a new 625 kt/y Borstar polyethylene unit at Total’s Bayport site in Texas, which is slated to be operational from 2020.
Sources cite that the new USD 1.7 billion ethane steam cracker facility is being constructed beside Total’s refinery and existing steam cracker at Port Arthur. The project is expected to create more than 1500 employment opportunities from its peak construction and engineering activities.
Industry experts deem this JV to expand both NOVA’s and Total’s presence in the US petrochemical industry and will give Borealis an opportunity to strengthen its foothold in the US.