Enterprise Products Partners L.P., the US midstream energy and petrochemicals company, has acquired the Ethylene storage and trading business Canadian producer, NOVA Chemicals Corporation which operates at the Mount Belvieu trading hub in Texas. The acquisition will be a long-term storage customer in the Enterprise system as NOVA Chemicals is one of the largest merchant producers of Ethylene and marketers on the U.S. Gulf Coast. In the deal, Enterprise’s subsidiary has acquired a wholly owned subsidiary of NOVA Chemicals, operating Ethylene storage business and trading hub in Mount Belvieu.
The acquisition will be providing the Enterprise possession of the largest Ethylene market hub in Texas since its establishment in 2001 which will be stimulating the company’s growing Ethylene network in the region. The acquisition will provide increased physical connectivity, market liquidity and transparency in pricing which will be beneficial for traders, producers, and consumers.
This will help NOVA to focus on the core business of Ethylene and Polyethylene production which will be providing the best solution for long term for the Mount Belvieu Ethylene trading hub and storage business. This will also be helping NOVA in the safe and successful completion of the company’s world class Advanced SCLAIRTECH™ technology facility in Ontario which will help in delivering recyclable ready resins for sustainable packaging solutions.