Buckeye Partners, L.P. and NOVA Chemicals Corp. have signed a memorandum of understanding regarding the evaluation and development of a mixed NGL pipeline from the Marcellus Basin in Pennsylvania to the refining and petrochemical complex in the Sarnia-Lambton area in Ontario, Canada.
The Union Pipeline Project would ship mixed NGLs principally for use as petrochemical feedstock.
Plans call for Buckeye to develop, construct, own, and operate the Union Pipeline and conduct an open season to solicit additional customer interest in the destination market in Sarnia prior to executing definitive agreements.
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 NGLs to the closest demand center. Initial service of the Union Pipeline would be from Pittsburgh to the NOVA Chemicals Corunna olefins cracker near Sarnia, a market that has historically had limited NGL feedstock flexibility. Due to the proximity of Sarnia to the Btu-rich natural gas production area of the Marcellus Basin, NOVA would be able to secure long-term competitive petrochemical feedstock supply via the Union Pipeline Project.