NOVA Chemicals signs agreement to grow its U.S. Gulf Coast presence
(Thomson Reuters ONE) -
NOVA Chemicals Corporation, 1000 Seventh Avenue S.W., Calgary, Alberta, Canada
T2P 5L5
www.novachemicals.com | 403.750.3600 tel | 403.269.7410 fax
Calgary, Alberta (April 17, 2017) - NOVA Chemicals Corporation ("NOVA
Chemicals") and Williams Partners L.P. ("Williams") today announced that NOVA
Chemicals has agreed to acquire Williams' 88.46% ownership interest in the
Geismar, Louisiana olefins plant, approximately 525 acres of undeveloped land
adjacent to the plant, and Williams' interest in the Ethylene Trading Hub in Mt.
Belvieu, Texas (collectively, the "Business"). Under the terms of the membership
interest purchase agreement, NOVA Chemicals will pay $2.1 billion for the
Business, subject to working capital adjustments. Upon closing, NOVA Chemicals
and Williams will enter into a long-term arrangement for Williams to transport
and supply ethane feedstock to support the plant.
The plant produces approximately 1.95 billion pounds of ethylene annually and is
located in the U.S. Gulf Coast region, the largest refining and petrochemical
production hub in North America. With riverfront access, the adjacent land
represents a significant opportunity for future growth.
"This transaction provides us with the opportunity to acquire an operating
facility with immediate, positive cash flow, and with access to new customers
and the benefits of an experienced workforce. A key component of our growth
strategy is to expand to the U.S. Gulf Coast and leverage next generation
technology to better serve our customers in the Americas. The Business allows us
to diversify our geographic footprint benefiting from access to significant U.S.
shale gas reserves and well established petrochemical and supply chain
infrastructure," stated Todd Karran, President and CEO of NOVA Chemicals.
"Coupled with our recent announcement regarding our plans to form a joint
venture with Borealis and Total in Texas, we have taken steps to firmly
establish our presence on the U.S. Gulf Coast. We are appreciative for the
support of our Board of Directors and owner. This is a clear indication of their
commitment to the growth of our business and to these value-adding investments
in the Americas," continued Karran.
NOVA Chemicals will make offers of employment to all employees working at the
Geismar plant, along with sales and marketing employees of the Business from
Williams' Houston office.
Closing of the acquisition is subject to customary regulatory approvals and
other conditions, but is not subject to any financing condition. The parties
expect the transaction to close in summer 2017.
HSBC Securities (USA) Inc. acted as exclusive financial advisor to NOVA
Chemicals. Orrick, Herrington & Sutcliffe LLP and Liskow & Lewis are acting as
legal counsel. The acquisition is supported by a fully committed bridge
financing provided by HSBC Bank USA, N.A. NOVA Chemicals intends to approach the
capital markets prior to closing to put in place long-term financing.
About NOVA Chemicals' Growth Strategy
Currently, NOVA Chemicals is working on three opportunities to help meet the
growing consumer demand for polyethylene:
* Acquisition of Williams' Geismar, Louisiana olefins plant and complex, an
operating facility with positive cash flow and significant opportunity for
future growth
* Proposed Joint Venture with Borealis and Total involving Total's existing
Bayport, Texas polyethylene facility, development of a new light feed
cracker in Port Arthur, Texas and a new Borstar(®) technology polyethylene
facility in Bayport, with expected start-up in 2020
* Proposed polyethylene plant utilizing NOVA Chemicals' Advanced
SCLAIRTECH(TM) technology, base case is Sarnia Ontario, with a final
investment decision expected in 2017 and start-up targeted for 2022
About NOVA Chemicals
NOVA Chemicals develops and manufactures chemicals and plastic resins that make
everyday life safer, healthier and easier. Our employees work to ensure health,
safety, security and environmental stewardship through our commitment to
sustainability and Responsible Care(®). NOVA Chemicals, headquartered in
Calgary, Alberta, Canada, is a wholly owned subsidiary of the International
Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab
Emirates.
About Williams Partners
Williams Partners is an industry-leading, large-cap natural gas infrastructure
master limited partnership with a strong growth outlook and major positions in
key U.S. supply basins. Williams Partners has operations across the natural gas
value chain from gathering, processing and interstate transportation of natural
gas and natural gas liquids to petchem production of ethylene, propylene and
other olefins. Williams Partners owns and operates more than 33,000 miles of
pipelines system wide - including the nation's largest volume and fastest
growing pipeline - providing natural gas for clean-power generation, heating and
industrial use. Williams Partners' operations touch approximately 30 percent of
U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of
large-scale U.S. natural gas infrastructure, owns approximately 74 percent of
Williams Partners.
For more information visit:
www.novachemicals.com
www.williams.com
###
For further information please contact:
NOVA Chemicals - Media Inquiries
Mark Horner
Director, Corporate Communications
e-mail: mark.horner(at)novachem.com
NOVA Chemicals - Investor Inquiries
Tracey Simpson
Leader, External Financial Reporting
e-mail: tracey.simpson(at)novachem.com
The NOVA Chemicals logo is a registered trademark of NOVA Brands Ltd.;
authorized use.
Advanced SCLAIRTECH(TM) is a trademark of NOVA Chemicals.
Responsible Care is a registered trademark of the Chemistry Industry Association
of Canada
Borstar is a registered trademark of the Borealis Group.
Forward Looking Statements: This news release contains forward-looking
statements regarding (i) NOVA Chemicals planned acquisition of Williams'
Geismar, Louisiana olefins plant, adjacent undeveloped land and Williams'
interest in the Ethylene Trading Hub in Mt. Belvieu, Texas and (ii) NOVA
Chemicals' growth strategy. Forward-looking statements include the expected
timing of closing of the Williams' Geismar acquisition, NOVA Chemicals'
financing plans, expected current and potential benefits and opportunities
related to the acquisition, including opportunities for growth, and statements
concerning three current opportunities supporting NOVA Chemicals' growth
strategy, including the expected timing of decisions and start-up of such
opportunities. By their nature, forward-looking statements require NOVA
Chemicals to make assumptions and are subject to inherent risks and
uncertainties. NOVA Chemicals' forward-looking statements are expressly
qualified in their entirety by this cautionary statement. In addition, the
forward-looking statements are made only as of the date of this news release,
and except as required by applicable law, NOVA Chemicals undertakes no
obligation to update the forward-looking statements to reflect new information,
subsequent events or otherwise.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NOVA Chemicals Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 17.04.2017 - 13:47 Uhr
Sprache: Deutsch
News-ID 536530
Anzahl Zeichen: 8536
contact information:
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Kategorie:
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