Jacobs Receives Contract from Aux Sable Canada LP and NOVA Chemicals for Extraction Plant Project

07-12-2007: Jacobs Engineering Group Inc. received a contract from Aux Sable Canada LP and NOVA Chemicals for the engineering, procurement, and construction management of the extraction plant proposed for Fort Saskatchewan, Alberta.

Officials did not disclose the contract value.

The proposed extraction plant will have the capacity to process as much as 1.2 billion cubic feet of natural gas per day from the Alliance pipeline, and will produce approximately 40,000 barrels per day of ethane. The extraction plant will be owned and operated by Aux Sable Canada LP, with the ethane delivered via pipeline to NOVA Chemicals' Joffre, Alberta, petrochemical complex for use as a feedstock in the production of ethylene. Engineering work began in March and facility start-up is expected in mid- 2010. Jacobs will access over three decades of experience in gas processing as well as extensive modularization capabilities to engineer and construct the facility.

In making the announcement, Jacobs Group Vice President Chip Mitchell stated, "Jacobs brings extensive knowledge in this area through development of more than 40 gas projects. We are thrilled to receive this unique opportunity to work with Aux Sable and NOVA Chemicals, adding to the long-term viability of our industry and the future growth of the province."

The proposed project is aligned with the Alberta government's new ethane recovery policy to enhance sources of feedstock for the petrochemical industry. Maintaining and extending the feedstock advantage for production of ethylene is fundamental to the long-term viability of the petrochemical industry in the province. By increasing the recovery of ethane from natural gas exports, this project will help position the Alberta petrochemical industry for future growth.