Total SA FP Borealis AG and NOVA Chemicals Corporation said Monday that their affiliates have signed definitive agreements to form a petrochemical joint venture on the U.S. Gulf Coast.
Total will own 50% of the joint venture, with the other 50% held by Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals.
The joint venture will include an ethane steam cracker--which is under construction in Port Arthur, Texas--an existing polyethylene facility owned by Total in Bayport, Texas and a new polyethylene unit at Total's Bayport site.
"We look forward to working with Borealis and NOVA Chemicals to create world-class facilities and become a major player in the growing U.S. and global market for polyethylene," said Bernard Pinatel, president of refining and chemicals at Total.
NOVA Chemicals, which is headquartered in Canada, is wholly-owned by Mubadala Investment Co. of the Emirate of Abu Dhabi.
Through its holding company, Mubadala owns 64% of Borealis, with OMV AG (OMV.VI) holding the remaining stake.
The financial details of the deal, which is subject to customary closing conditions, weren't disclosed.