Buckeye Partners and NOVA Chemicals Corporation have signed a Memorandum of Understanding regarding the evaluation and development of a mixed natural gas liquids (NGL) pipeline from the Marcellus Basin in Pennsylvania, United States, to the refining and petrochemical complex, located in the Sarnia-Lambton area, 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 centre.
Initial service of the Union Pipeline would be from Pittsburgh, Pennsylvania, to the NOVA Chemicals Corunna olefins cracker near Sarnia.
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.
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The proposed project is subject to the results of an ongoing feasibility study regarding construction requirements, project economics, and other matters.
Image caption:
Buckeye Partners’ United States pipeline system map.
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