Total SA Enters into Joint Venture with Borealis & Nova Chemical

Total SA signs a cooperation agreement with Nova Chemicals Corporation and Borealis AG to invest USD1.6 Billion in Ethylene plant

United States: Total S.A., a France based leading petrochemical manufacturer, has signed a joint venture agreement with Borealis, a leading provider of solutions in the field of polyolefins and Nova chemicals, a global producer of polyethylene and styrenic polymers. The joint venture aims to set up an ethane steam cracker with a capacity of 1 million metric tons per year at Port Arthur, adjacent to a steam cracker facility jointly owned by Total and BASF. Additionally, a new Borstar® polyethylene unit, with a capacity of

625,000 tons per year, would be positioned at Bayport site, Texas. The construction of this new facility, in which Total S.A. would have majority shares, is expected to commence by 2020.

TechSci Research depicts that the three-way partnership for the ethylene facility would strengthen the position of all the companies in the North America ethylene market and would bolster the range of ethylene products, including Polyethylene(PE), Ethylene Oxide and Ethylene Dichloride(EDC). Moreover, the new company would ensure better reach to suppliers and would cater large remote consumers of ethylene in United States and around the globe.

According to the recently published report by Techsci Research, “Global Ethylene Market By End Use, By Region, Competition Forecast and Opportunities, 2011 - 2025”, the global ethylene market is expected to grow at a CAGR of around 11.26% during 2016-2025, on the back of growing demands for flexible packaging materials, disposable items and expanding real estate & construction sector, globally. Increasing awareness among people about package labelling and its advantages, along with production of light weight automobiles and expanding infrastructure sector in developing countries is expected to result in augmented demand for ethylene and its derivatives. Additionally, lifting of sanctions on Iran and its entry to the global market with abundant crude oil reserves and low cost feedstock availability in conjugation with discovery of shale gas reserves in North America, is expected to lead to higher production capacity of ethylene, globally.