Nova signs partnership deal for Marcellus Shale pipeline
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Nova Chemicals Corp. could supply one of its Canadian plants with natural gas from Marcellus Shale deposits in Western Pennsylvania through a proposed pipeline venture.
Nova and Buckeye Partners said they had signed a memo of understanding to develop a pipeline to carry mixed natural gas liquids from Pittsburgh to Nova's plant in Corunna, Ontario.
Marcellus Shale is a geological rock formation found in an area that stretches from West Virginia and eastern Ohio, through Pennsylvania, western Maryland and western New York into Ontario. Energy experts believe that the gas found in the shale holds widespread potential as a future source of fuel and could provide significant revenues to companies who drill for it and the local economies where it is captured.
Nova's Corunna facility -- a refinery and petrochemical complex -- is in a region of western Ontario called Chemical Valley that is home to other potential customers for the pipeline. Buckeye Partners will solicit interest from other businesses that operate near the Nova plant before it finalizes plans for the pipeline.
Buckeye, a limited partnership that owns and operates a network of energy pipelines covering an estimated 5,400 miles nationwide, is headquartered in Houston and has primary operations in Breinigsville in southeastern Pennsylvania.
Nova's primary plants are in Canada, and its executive offices are in Moon.
Buckeye would develop, construct and own the pipeline, which would be called the Union Pipeline Project. It's too early to determine where in the Pittsburgh region the pipeline would originate, said Robert Malecky, vice president, customer services for Buckeye.
The first step, he said, is a feasibility study to be conducted over the next several months. "It's something I believe Nova was researching. But with our footprint of pipeline systems, we are the logical partner to work with Nova," said Mr. Malecky.
Nova spokesman Greg Wilkinson said the proposed venture was the first Nova had explored involving Marcellus Shale. "It's a terrific opportunity with a lot of potential."
First Published February 12, 2010 12:00 am
