By Paul Morden from www.theobserver.ca The Observer
Word that a pipeline could be built from Pennsylvania to NOVA Chemicals’ Corunna plant is good news for Sarnia-Lambton, local officials say. The pipeline company Buckeye Partners L.P. and NOVA have signed a memorandum of understanding to evaluate and develop a mixed natural gas liquids pipeline from the Marcellus Basin in Pennsylvania to Corunna.
“That is a very good piece of news,” said Ray Curran of the Sarnia Construction Association. “Anything that helps NOVA helps the community.”
Natural gas liquids carried in the pipeline would be used principally as petrochemical feedstock. NOVA spokesperson Greg Wilkinson said the proposal is in its early stages “but we’re certainly excited about the potential.” The Union Pipeline Project is subject to final agreements and regulatory approvals. Buckeye would develop, build, own and operate the pipeline, and it’s expected to seek out other potential customers in Sarnia-Lambton, a news release states.
“It bodes well for the security of jobs we have currently with NOVA Chemicals, and others in the community that purchase products from NOVA,” said St. Clair Township Mayor Steve Arnold.
“It’s good news they’re still looking at this as a prime area for investment and I’m really encouraged for our whole community.” Sarnia Mayor Mike Bradley, chairperson of the Sarnia-Lambton Economic Partnership, called the pipeline proposal a positive step “because it gives strength to the local industrial base.”
Wilkinson said, “We think the project has significant potential benefits” for both companies, as well as the Sarnia region and natural gas producers in the Marcellus Basin. “It’s the largest unconventional natural gas deposit in the world,” Wilkinson said, adding it is “expected to significantly change the natural gas market in North America.” The Chemical Valley’s location makes it a natural market for the deposit’s gas liquids, he said. “For our business in Sarnia, particularly our Corunna cracker, competitive feedstock is the key to our success,” he said. “Finding an additional source of competitive feedstock, like this Marcellus shale, helps ensure the commercial sustainability of our Sarnia operations.” Wilkinson said NOVA currently buys feedstock from Western Canada, the U.S., and offshore. The Corunna site is one of several plants NOVA operates in Sarnia-Lambton.
Bradley said the economic partnership has been looking for ways that government can help petrochemical industries, particularly the refinery sector where there appears to be an overcapacity in North America. “Refineries are being shut in the U.S. and we just had one shut in Montreal,” he said. “It’s my view that the petrochemical industry is the Rodney Dangerfield of industries in Canada. There isn’t respect shown by other levels of government to what a wealth creator it is.” Bradley said the partnership is concerned about the impact changes in the international marketplace are having on local refineries and petrochemical plants. “We have competition we haven’t had before.” That why the announcement about the pipeline proposal is a “positive step forward” for the area, he said.
Observer Article ID# 2444027