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Total: towards creation of a joint venture in the US

(CercleFinance.com) - Total, Borealis AG and NOVA Chemicals Corporation announced on Monday afternoon that their respective subsidiaries have signed the definitive agreements to create a petrochemical joint venture in the US.

The creation of this joint-venture, of which Total and Novealis Holdings LLC - the joint venture between Borealis and NOVA Chemicals - which will each hold 50% stakes, is subject to typical regulatory requirements, and particularly approval from the relevant authorities.

The joint venture will include the ethane-based steam cracker that is currently being made in Port Arthur, Texas, which has a capacity of one million tonnes per year; Total's existing polyethylene unit, which has a capacity of 400,000 tonnes per year, located in Bayport, Texas; and a new 625,000 tonne Borstar polyethylene technology unit in Bayport, Texas, whose final investment decision remains subject to the signing of an engineering and construction contract (EPC) that is acceptable for all partners.

The project, which is scheduled to begin in 2020, will create nearly 1,500 jobs at its peak.

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