HOUSTON/CALGARY, February 10, 2010 – Buckeye Partners, L.P. (“Buckeye”) (NYSE: BPL) and NOVA Chemicals Corporation (“NOVA Chemicals”) announced today that they 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 to the refining and petrochemical complex in the Sarnia-Lambton area in 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 center. Initial service of the Union Pipeline would be from Pittsburgh, Pennsylvania 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 Chemicals would be able to secure long-term competitive petrochemical feedstock supply via the Union Pipeline Project.
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. Buckeye currently owns approximately 5,400 miles of refined products pipelines, with a major presence in the Northeastern and Midwestern United States, and is a logical choice to operate a new, safe and reliable NGL system from the Marcellus Basin. The proposed project is subject to the results of an ongoing feasibility study regarding construction requirements, project economics, and other matters.
NOVA Chemicals develops and manufactures chemicals, plastic resins and end-products that make everyday life safer, healthier and easier. Our employees work to ensure health, safety, security and environmental stewardship through our commitment to sustainability and Responsible Care®. NOVA Chemicals is a wholly owned subsidiary of The International Petroleum Investment Company (IPIC) of the
Emirate of Abu Dhabi. www.novachemicals.com
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This press release includes forward-looking statements that Buckeye believe to be reasonable as of today’s date. Such statements are identified by use of the words “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “predicts”, “projects”, “should”, and similar expressions. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and that may be beyond Buckeye’s control. You should read Buckeye’s Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q for a more extensive list of factors that could affect results. Buckeye undertakes no obligation to revise any forward-looking statements to reflect events or circumstances occurring after today’s date.