Nova Chemicals Signs MOU with Hess and Mistral to Purchase and Transport Ethane
Jul 21, 2010 (Close-Up Media via COMTEX) --
Copyright Close-Up Media, Inc. 2010. All Rights reserved
Nova Chemicals announced that it signed a memorandum of understanding (MOU) with Hess Corp. and Mistral Energy, Inc. to purchase and transport ethane production from Hess' Tioga Gas Plant in North Dakota via a proposed pipeline to Alberta, Canada.
In a release, Nova Chemicals said it 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 said it is one of the largest lease holders in the Williston Basin, and it 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.
Nova Chemicals develops and manufactures chemicals, plastic resins and end-products. The company, headquartered in Calgary, Alberta, Canada, is a subsidiary of The International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi.
Hess Corp. is a global integrated energy company engaged in the exploration and production of crude oil and natural gas, as well as the refining and marketing of petroleum products, natural gas, and electricity.
Vantage Pipeline is an affiliate of Mistral Energy, a private company based in Calgary, Alberta.
More information:
www.novachemicals.com
www.vantagepipeline.com
http://hess.com/default.aspx
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