The long-standing legal battle between chemical giants Dow and NOVA Chemicals Corporation has taken another significant turn, with the Court of King's Bench of Alberta, Canada, issuing a judgment on June 10, 2025, ordering NOVA Chemicals to pay Dow an additional CAD$1.620 billion (approximately $1.2 billion) in damages. This substantial sum relates to losses Dow incurred from the companies' jointly owned ethylene asset located in Joffre, Alberta, Canada.

This latest ruling marks a continuation of a protracted dispute concerning NOVA Chemicals' operation of the shared facility. The judgment includes interest accrued up to April 7, 2025, though it excludes any subsequent interest or legal costs. Dow anticipates receiving this payment in the fourth quarter of 2025.

The core of the dispute revolves around Dow's claims that NOVA Chemicals, as the operator of the jointly owned ethylene asset, failed to operate the facility at its full capacity and breached contractual obligations since 2001. These alleged failures resulted in a reduced supply of ethylene to Dow, impacting its production and sales.

This is not the first time NOVA Chemicals has been ordered to compensate Dow for these issues. In 2019, following a June 2018 court decision, NOVA Chemicals made a prior payment of CAD$1.43 billion (approximately $1.08 billion) in damages to Dow. That initial decision had found NOVA liable for failing to operate the Joffre ethylene asset at full capacity and for breaching contractual agreements.

However, the 2018 decision also led to an appeal, during which the court directed a recalculation of Dow's damages. This recalculation was to cover two distinct periods: from 2001 through 2012, and then from 2013 through June 2018, the latter of which had not yet been quantified at the time of the initial ruling. The recent CAD$1.620 billion judgment addresses these recalculated damages, providing further compensation to Dow for the sustained impact on its ethylene supply.

Ethylene is a crucial building block in the petrochemical industry, used in the production of various plastics, including polyethylene, which finds applications in everything from packaging and infrastructure to consumer goods. The consistent and full-capacity operation of such a vital asset is paramount for companies like Dow, which rely on a steady supply for their downstream operations.

While the latest judgment represents a significant legal victory and a substantial financial award for Dow, it is important to note that the ruling is still subject to appeal. Should NOVA Chemicals choose to appeal the decision, the finality and timing of the payment could be further impacted.