NOVA Chemicals and Aux Sable Reach Agreement on Alberta Ethane Extraction Plant

23-Mar-2007

NOVA Chemicals Corporation announced that the company has signed a letter of intent with Aux Sable Canada Ltd. ("ASC") 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.

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