MOSCOW (MRC) -- Enterprise Products Partners L.P. and NOVA Chemicals Corporation has announced that a subsidiary of Enterprise has acquired a wholly owned subsidiary of NOVA Chemicals, which operates an ethylene storage business and trading hub in Mont Belvieu, Texas, reported BusinessWire.
NOVA Chemicals, one of the largest merchant ethylene producers and marketers on the US Gulf Coast, will be a long-term storage customer in the Enterprise system.
“The acquisition, which gives Enterprise ownership of the largest ethylene market hub in Texas since it was established in 2001, will complement Enterprise’s own growing ethylene network in the region,” said Chris D’Anna, senior vice president, Petrochemicals of Enterprise’s general partner. “The combined system offers multiple benefits for producers, consumers and traders, such as increased physical connectivity, greater market liquidity and pricing transparency, as well as improved access to Enterprise’s ethylene midstream services, including our export terminal and growing Gulf Coast pipeline system.”
“This transaction provides the best long-term solution for the Mont Belvieu ethylene storage business and trading hub, allowing NOVA to focus on our core business of ethylene and polyethylene production, including the safe and successful completion of our world-class Advanced SCLAIRTECH technology facility in Ontario that will deliver recycle ready resins for sustainable packaging solutions,” stated John Thayer, senior vice president sales and marketing for NOVA Chemicals.
As MRC informed earlier, NOVA Chemical has declared force majeure (FM) on ethylene shipments from its cracker in Geismar, Louisiana due to an unexpected production shutdown. The 885,000 mt/year of ethylene and 45,000 mt/year of propylene cracker in Geismar was shut on 14 June for unplanned repairs owing to a technical issue. The cracker was expected to remain off-line until end-June, and FM was also to remain in effect for about two weeks.
Ethylene is the main feedstocks for the production of polyethylene (PE).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.
NOVA Chemicals develops and manufactures chemicals and plastic resins that make everyday life healthier, easier and safer. NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is wholly owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.