NOVA Chemicals has entered into a MOU agreement to deliver ethane from Caiman Energy’s Fort Beeler plant, a gas processing facility, in Marcellus Shale to Sarnia, Ontario petrochemical market.
As per the agreement, Caiman Energy will extend the gas processing plant to ease ethane extraction from natural gas. The expansion will enable NOVA to buy nearly 20,000 barrels of ethane per day.
NOVA Chemicals’ CEO, Randy Woelfel commented that the ethane supply project offers a great opportunity to the company in the Ontario marketplace. The company will take steps to ensure that its Corunna plant remain the ideal choice for natural gas producers in Marcellus.
Caiman Energy’s President and CEO, Jack Lafield stated that the NOVA Chemicals project can offer value and flow assurances required for natural gas development in Marcellus Shale’s liquid rich region. Caiman Energy becomes the first company to support this major project for producers in Marcellus Shale region.
The purchase and sale contract is subject to finalizing a pipeline transportation deal for transferring ethane from West Virginia-Based Fort Beeler plant to Ontario petrochemical market.
Source: http://www.novachemicals.com/