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NOVA Chemicals to purchase ethane from Williston Basin


July 16, 2010
by PLANT Staff

NOVA Chemicals is a Calgary based producer of polyethylene resins and advanced foam resins.

Photo: Nova Chemicals

CALGARY: NOVA Chemicals has 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 Tioga, N.D. via a pipeline to Alberta.

NOVA Chemicals, a Calgary based producer of polyethylene resins and advanced foam resins for consumer, industrial and packaging products, will purchase 100 per cent of the ethane produced at the Tioga plant under a long-term arrangement.

Hess is one of the largest leaseholders in the Williston Basin—a large sedimentary basin known for petroleum and potash that stretches across southern Saskatchewan, eastern Montana and North and South Dakota.

Calgary-based Mistral Energy will design, construct, own and operate the proposed Vantage pipeline to transport ethane.

The 700 km pipeline made of high vapour pressure (HVP) steel, will carry ethane from a source near Tioga through Saskatchewan to Empress, Alta.

According to Mistral’s website, the proposed pipeline still requires approval from both Canadian and US regulatory agencies, but the company has the pipeline construction scheduled for 2012.  

“This is the first time liquids from the Williston Basin will flow north and tie into existing Alberta infrastructure," said Randy Woelfel, NOVA CEO. "We also expect to have opportunities to work with other producers in the basin to move additional ethane volume."

The initial pipeline capacity is planned to transport about 45,000 barrels per day of ethane and can expand to 60,000 barrels per day.