NOVA Chemicals has been ordered to pay Dow an additional CAD $1.6 billion by the Court of King’s Bench of Alberta, Canada, in damages. Equivalent to around USD $1.2 billion, the judgment was signed last month. However, the judgment is subject to appeal.
Dow
NOVA Chemicals set to pay Dow CAD $1.6 billion.
The judgment relates to losses Dow incurred from the pair’s jointly owned ethylene asset in Joffre, Canada. Additionally, the award includes interest to the 7th of April 2025 but excludes any subsequent interest or legal costs, with payment expected in the fourth quarter of 2025.
This latest ruling adds to the CAD $1.43 billion payment that NOVA Chemicals has already made to Dow in damages in 2019. That decision was due to NOVA Chemicals being found to have failed to operate the jointly owned ethylene asset at full capacity, breaching contractual obligations since 2001. This resulted in a reduction in ethylene for Dow. Following an appeal, the damages were recalculated for the periods 2001-2012 and 2013-June 2018, which had not yet been quantified.