Nova Chemicals has the right to purchase 100% of the ethane produced at the Tioga Gas Plant under a long-term arrangement.
The proposed pipeline, which is expected to start-up in the fourth quarter of 2012, will be constructed, owned and operated by Vantage.
The proposed pipeline design will allow for the transport of up to 60,000 barrels per day of ethane and will be capable of further capacity additions if required in the future.
Vantage filed formal regulatory applications for the pipeline with Canadian and US regulators in early February.
Nova Chemicals CEO Randy Woelfel said that this new source diversifies its feedstock supply from ethane based on natural gas flows exported from Alberta to include new sources based on associated gas from oil production, and positions the company for long term growth.
