Published: February 22, 2018 |

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Total will form a joint venture (JV) for petrochemicals on the US Gulf Coast with Austrian polyethylene and polypropylene producer Borealis and Canadian plastics and chemical company Nova Chemicals.

While the French oil and gas giant will hold a stake of 50 percent, the other two firms will hold the remaining 50 percenr in the petrochemicals joint venture.

The assets of the new joint venture will include a $1.7bn ethane steam cracker, which is being constructed in Port Arthur, Texas. The new ethane steam cracker will be constructed alongside the Port Arthur refinery of Total and its existing steam cracker which it co-owns with BASF.

In March 2017, CB&I was given an engineering, procurement and construction (EPC) contract (EPC) by Total to build the new ethane steam cracker, which is slated to begin operations in 2020. The project is likely to involve 1,500 roles during peak engineering and construction activity.

Total Refining & Chemicals President Bernard Pinatel said: “This agreement is a key milestone for this integrated petrochemicals project. This joint venture is aligned with Total’s strategy to strengthen our position by taking advantage of low-cost U.S. gas.

“We look forward to working with Borealis and NOVA Chemicals to create world-class facilities and become a major player in the growing U.S. and global market for polyethylene.”

As per the agreement signed by the partners, Total will contribute its existing polyethylene facility in Bayport, Texas which has a production capacity of 400kt/y to the joint venture.

The assets of the new JV will also feature a new Borstar polyethylene unit with a production capacity of 625kt/y, which will come up at Total’s Bayport site, following a decision on the result of an acceptable EPC contract.

Borealis CEO Mark Garrett said: “The JV with Total and NOVA Chemicals is a key project in advancing our global growth.

“Not only are we convinced of the excellent cost-economics of this integrated brownfield investment project, but we are also excited to bring our unique product grades based on our Borstar technology to the North American market.”

For Nova Chemicals, the partnership with Total and Borealis will help it expand beyond its traditionally Canadian presence by extending its footprint in the US Gulf Coast while giving it scope to deliver a wide slate of products for its customers.

The joint venture creation will be subject to receipt of regulatory approvals among other customary closing conditions.

Source: Energy Business Review

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