Canadian chemicals manufacturer Nova Chemicals (Calgary, Alberta; www.novachem.com) has signed a memorandum of understanding with Hess Corporation (New York City / USA; www.hess.com) to start receiving ethane from the latter’s plant in Tioga, North Dakota, to feed ethylene and PE production at its Joffre petrochemical complex near Calgary. To realise this goal, a new pipeline is set to be built between the “Bakken Formation” oil and gas field, located between the states of North Dakota, Montana and Saskatchewan, and Red Deer / Canada. The pipeline is expected to be completed by Q3 2010.

The MoU further details that Nova will purchase 100% of the ethane produced at Hess’ Tioga gas plant. The Canadian group also said it is on the lookout for additional producers active in the “Bakken Formation” to secure more ethane supply for Joffre, where it manufactures about 2m t/y of ethylene and 1m t/y of PE.