French oil company Total SA, Austria's Borealis AG and Canada-based Nova Chemicals Corp. have closed a joint venture in petrochemicals on the US Gulf Coast after receiving all required regulatory approvals.
The three companies announced the plans in February for the JV, which has been named Bayport Polymers LLC.
The JV is 50% owned by Total and 50% owned by Novealis Holdings LLC, a joint venture between Borealis and Nova Chemicals.
The project includes a $1.7bn ethane steam cracker, with a capacity of 1 million tonnes a year, which is currently being built alongside Total's Port Arthur refinery and Total/BASF's existing steam cracker.
The project further comprises Total's existing polyethylene 400 kilotonne per annum (ktpa) facility in Bayport, Texas, as well as a new 625ktpa polyethylene unit using the Borealis Borstar technology at Total's Bayport, Texas, site.
The project, which is scheduled to start up in 2020, is expected to create around 1,500 jobs during peak engineering and construction activity.
Diane Chamberlain has been appointed as president of the new entity.
“We're excited for the future of our new company. The partnership between Total, Borealis and NOVA Chemicals will create a major player in the US polyethylene market,” said Chamberlain.
The JV, said Chamberlain, will use “low-cost feedstocks” in the US to deliver “quality products that respond to the growing global demand for plastics.”