Nova Chemicals buys Williams Partners' Geismar olefins plant for $2.1 bn

“This transaction provides us with the opportunity to acquire an operating facility with immediate, positive cash flow, and with access to new customers and the benefits of an experienced workforce. A key component of our growth strategy is to expand to the US Gulf Coast and leverage next generation technology to better serve our customers in the Americas. The business allows us to diversify our geographic footprint benefiting from access to significant US shale gas reserves and well established petrochemical and supply chain infrastructure,” stated Todd Karran, President and CEO of Nova Chemicals. 

Coupled with Nova’s recent announcement regarding its plans to form a joint venture with Borealis and Total in Texas, the company has taken steps to firmly establish its presence on the US Gulf Coast. “This is a clear indication of their commitment to the growth of our business and to these value-adding investments in the Americas,” added Karran.

In addition to Williams’ Geismar olefins plant deal, Nova Chemicals is currently working on two more opportunities to help meet the growing consumer demand for polyethylene.

First, the company has proposed a joint venture with Borealis and Total involving Total’s existing Bayport (Texas, USA) polyethylene facility, development of a new light feed cracker in Port Arthur (Texas, USA) and a new Borstar technology polyethylene facility in Bayport, with expected start-up in 2020.

Second, the company is planning to set up polyethylene plant at Sarnia (Ontario, Canada) utilising Nova Chemicals’ Advanced Sclairtech technology, with a final investment decision expected in 2017 and start-up targeted for 2022.