EMMAUS, Pa. - Buckeye Partners, L.P. and NOVA Chemicals Corp. on Feb. 11 announced a joint memo of understanding regarding evaluation and development of a mixed natural gas liquids (NGL) pipeline from the Marcellus Basin in Pennsylvania to the refining and petrochemical complex in the Sarnia-Lambton area in Ontario, Canada.
The Union Pipeline Project, which is subject to final agreements and any necessary regulatory approvals, would ship mixed NGLs, principally for use as petrochemical feedstock.
The Union Pipeline Project would diversify refining and petrochemical feedstock supply for NOVA Chemicals and other potential users in the area and provide producers in the Marcellus Basin with take-away capacity for their NGLs to the closest demand center.
Initial service of Union would be from Pittsburgh, Pa., to the NOVA Chemicals Corunna olefins cracker near Sarnia, a market that has historically had limited NGL feedstock flexibility.
Due to the proximity of Sarnia to the BTU-rich natural gas production area of the Marcellus Basin, NOVA Chemicals would be able to secure long-term competitive petrochemical feedstock supply via Union.
Buckeye would develop, construct, own, and operate the Union Pipeline and would conduct an open season to solicit additional customer interest in the destination market in Sarnia prior to executing definitive agreements. The proposed project is subject to the results of an ongoing feasibility study regarding construction requirements, project economics and other matters.
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