Canada’s Nova Chemicals has agreed to pay $2.1 billion to acquire Williams’ 88.46% stake in the olefins plant at Geismar, Louisiana, in the US. The deal also includes undeveloped land adjacent to the facility, as well as Williams’ interest in the ethylene trading hub in Mont Belvieu, Texas.

Nova said the olefins plant produces about 88,450 t of ethylene annually, and the land has riverfront access, which the company said represents a significant opportunity for future growth. Once the transaction has completed, Williams will enter into a long-term agreement to transport and supply ethane feedstock to the plant.

The acquisition, which remains subject to customary conditions and regulatory approvals, is expected to close in mid-2017. Williams will use the proceeds to reduce its debt as well as to fund planned capital and investment expenditures.

Todd Karran, president and CEO of Nova Chemicals, said a key component of his company’s growth strategy is to expand to the US Gulf Coast and the Williams business would give it access to significant US shale gas reserves and a well-established petrochemical and supply chain infrastructure.

In addition to the Williams acquisition, Calgary-headquartered Nova said it is working on two other opportunities to help meet growing demand for PE. Late last month, it announced a joint venture with Borealis and Total to build a 625,000 t/y PE plant at Bayport, Texas, as well as a 1 million t/y ethane cracker at Port Arthur, Texas. Start-up is expected in 2020.

Another PE plant based on Nova’s Advanced Sclairtech technology is proposed for start-up in 2022, with Sarnia, Ontario, Canada, the favored location. A final investment decision is expected sometime this year.