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NOVA & Aux Sable to develop Alberta ethane extraction plant

Mar '07
NOVA Chemicals Corporation announced that the company has signed a letter of intent with Aux Sable Canada Ltd to develop an ethane extraction plant in Fort Saskatchewan, Alberta that would process natural gas from the Alliance Pipeline.

ASC and NOVA Chemicals will work together to develop the project, which will be owned and operated by ASC and is expected to begin operating in mid-2010.

The extraction plant will have the capacity to process as much as 1.2 billion cubic feet of natural gas per day and will produce approximately 40,000 barrels per day of ethane.

The extraction plant will be located on land owned by ASC in Fort Saskatchewan, adjacent to the site of ASC's Heartland Offgas Plant. Ethane will be delivered via pipeline to NOVA Chemicals' Joffre, Alberta, petrochemical complex for use as a feedstock in the production of ethylene.

Maintaining and extending the Alberta Advantage for production of ethylene is fundamental to the long-term viability of the petrochemical industry in the province,” said Jeffrey M. Lipton, President and CEO of NOVA Chemicals.

By increasing the recovery of ethane currently being exported from the province, this project will help position NOVA Chemicals and the rest of the Alberta petrochemical industry for future growth.

"This is an important next step in Aux Sable Canada's strategy to be a leader in fee-for-service processing in the Fort Saskatchewan area. We are excited about the opportunity to grow our Fort Saskatchewan facilities and to play an increasing role in the Government of Alberta's vision of value-added resource processing in the province," said W. J. (Bill) McAdam, President and CEO of ASC.

NOVA Chemicals Corporation

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