NOVA Chemicals signs agreement to grow its U.S. Gu

NOVA Chemicals Corporation (“NOVA Chemicals”) and Williams Partners L.P. (“Williams”) today announced that NOVA Chemicals has agreed to acquire Williams’ 88.46% ownership interest in the Geismar, Louisiana olefins plant, approximately 525 acres of undeveloped land adjacent to the plant, and Williams’ interest in the Ethylene Trading Hub in Mt. Belvieu, Texas (collectively, the “Business”). Under the terms of the membership interest purchase agreement, NOVA Chemicals will pay $2.1 billion for the Business, subject to working capital adjustments. Upon closing, NOVA Chemicals and Williams will enter into a long-term arrangement for Williams to transport and supply ethane feedstock to support the plant.

The plant produces approximately 1.95 billion pounds of ethylene annually and is located in the U.S. Gulf Coast region, the largest refining and petrochemical production hub in North America. With riverfront access, the adjacent land represents a significant opportunity for future growth. 

“This transaction provides us with the opportunity to acquire an operating facility with immediate, positive cash flow, and with access to new customers and the benefits of an experienced workforce. A key component of our growth strategy is to expand to the U.S. Gulf Coast and leverage next generation technology to better serve our customers in the Americas. The Business allows us to diversify our geographic footprint benefiting from access to significant U.S. shale gas reserves and well established petrochemical and supply chain infrastructure,” stated Todd Karran, President and CEO of NOVA Chemicals. “Coupled with our recent announcement regarding our plans to form a joint venture with Borealis and Total in Texas, we have taken steps to firmly establish our presence on the U.S. Gulf Coast. We are appreciative for the support of our Board of Directors and owner. This is a clear indication of their commitment to the growth of our business and to these value-adding investments in the Americas,” continued Karran.

NOVA Chemicals will make offers of employment to all employees working at the Geismar plant, along with sales and marketing employees of the Business from Williams’ Houston office.

Closing of the acquisition is subject to customary regulatory approvals and other conditions, but is not subject to any financing condition. The parties expect the transaction to close in summer 2017.

HSBC Securities (USA) Inc. acted as exclusive financial advisor to NOVA Chemicals. Orrick, Herrington & Sutcliffe LLP and Liskow & Lewis are acting as legal counsel. The acquisition is supported by a fully committed bridge financing provided by HSBC Bank USA, N.A. NOVA Chemicals intends to approach the capital markets prior to closing to put in place long-term financing.

About NOVA Chemicals’ Growth Strategy Currently, NOVA Chemicals is working on three opportunities to help meet the growing consumer demand for polyethylene:

• Acquisition of Williams’ Geismar, Louisiana olefins plant and complex, an operating facility with positive cash flow and significant opportunity for future growth
• Proposed Joint Venture with Borealis and Total involving Total’s existing Bayport, Texas polyethylene facility, development of a new light feed cracker in Port Arthur, Texas and a new Borstar ^® technology polyethylene facility in Bayport, with expected start-up in 2020
• Proposed polyethylene plant utilizing NOVA Chemicals’ Advanced SCLAIRTECH™ technology, base case is Sarnia Ontario, with a final investment decision expected in 2017 and start-up targeted for 2022

About NOVA Chemicals NOVA Chemicals develops and manufactures chemicals and plastic resins 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, headquartered in Calgary, Alberta, Canada, is a wholly owned subsidiary of the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates.

About Williams Partners Williams Partners is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale U.S. natural gas infrastructure, owns approximately 74 percent of Williams Partners.

For more information visit: www.novachemicals.com www.williams.com

The NOVA Chemicals logo is a registered trademark of NOVA Brands Ltd.; authorized use. Advanced SCLAIRTECH™ is a trademark of NOVA Chemicals. Responsible Care is a registered trademark of the Chemistry Industry Association of Canada

Borstar is a registered trademark of the Borealis Group.

Forward Looking Statements: This news release contains forward-looking statements regarding (i) NOVA Chemicals planned acquisition of Williams’ Geismar, Louisiana olefins plant, adjacent undeveloped land and Williams’ interest in the Ethylene Trading Hub in Mt. Belvieu, Texas and (ii) NOVA Chemicals’ growth strategy.  Forward-looking statements include the expected timing of closing of the Williams’ Geismar acquisition, NOVA Chemicals’ financing plans, expected current and potential benefits and opportunities related to the acquisition, including opportunities for growth, and statements concerning three current opportunities supporting NOVA Chemicals’ growth strategy, including the expected timing of decisions and start-up of such opportunities. By their nature, forward-looking statements require NOVA Chemicals to make assumptions and are subject to inherent risks and uncertainties. NOVA Chemicals’ forward-looking statements are expressly qualified in their entirety by this cautionary statement. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable law, NOVA Chemicals undertakes no obligation to update the forward-looking statements to reflect new information, subsequent events or otherwise.

For further information please contact: NOVA Chemicals – Media Inquiries Mark Horner Director, Corporate Communications e-mail: mark.horner@novachem.com  NOVA Chemicals – Investor Inquiries Tracey Simpson Leader, External Financial Reporting e-mail: tracey.simpson@novachem.com