Enterprise Products Partners L.P. (Houston) and NOVA Chemicals Corp. (Calgary, Alberta, Canada) announced that a subsidiary of Enterprise has acquired a wholly owned subsidiary of NOVA Chemicals, which operates an ethylene storage business and trading hub in Mont Belvieu, Texas. NOVA Chemicals, one of the largest merchant ethylene producers and marketers on the U.S. Gulf Coast, will be a long-term storage customer in the Enterprise system
“The acquisition, which gives Enterprise ownership of the largest ethylene market hub in Texas since it was established in 2001, will complement Enterprise’s own growing ethylene network in the region,” said Chris D’Anna, senior vice president, Petrochemicals of Enterprise’s general partner. “The combined system offers multiple benefits for producers, consumers and traders, such as increased physical connectivity, greater market liquidity and pricing transparency, as well as improved access to Enterprise’s ethylene midstream services, including our export terminal and growing Gulf Coast pipeline system.”
“This transaction provides the best long-term solution for the Mont Belvieu ethylene storage business and trading hub, allowing NOVA to focus on our core business of ethylene and polyethylene production, including the safe and successful completion of our world-class Advanced SCLAIRTECH™ technology facility in Ontario that will deliver recycle ready resins for sustainable packaging solutions,” stated John Thayer, senior vice president sales and marketing for NOVA Chemicals.