Jul 17 2010
NOVA Chemicals today announced that it signed a memorandum of understanding (MOU) with Hess Corporation (Hess) and Mistral Energy Inc. (Mistral) to purchase and transport ethane production from Hess’ Tioga Gas Plant in North Dakota via a proposed pipeline to Alberta, Canada.
NOVA Chemicals will purchase 100 percent of the ethane produced at the Tioga Gas Plant under a long term arrangement.
“This is an exciting opportunity for NOVA Chemicals and Alberta, as it is the first time liquids from the Williston Basin will flow north and tie into existing Alberta infrastructure,” said Randy Woelfel, Chief Executive Officer. “We also expect to have opportunities to work with other producers in the basin to move additional ethane volume.”
Hess is one of the largest lease holders in the Williston Basin and has an aggressive drilling program planned over the next several years. Mistral will design, construct, own and operate the proposed Vantage Pipeline to transport ethane from Hess’ Tioga Gas Plant into the existing Alberta infrastructure.
The initial pipeline capacity is planned to be approximately 45,000 barrels per day of ethane and will be expandable to approximately 60,000 barrels per day to handle future ethane supply from Williston Basin producers. The pipeline is expected to startup in the third quarter of 2012 and is subject to receipt of customary regulatory and other approvals.
This arrangement is one of several projects NOVA Chemicals is working on to complement traditional ethane supply sources in Alberta for consumption at its Joffre petrochemical complex.
Source: http://www.novachemicals.com/