By Angela Amato, Local Journalism Initiative Reporter, Investigative Journalism Foundation
March 16, 2025
Calgary-based NOVA Chemicals has a new ownership group — but the people calling the shots for the company and its 2,500 employees will still be on the other side of the world.
NOVA was founded in 1954 as a Crown corporation formerly known as the Alberta Gas Trunk Line Company Limited to manage Alberta’s natural gas collection. It later diversified into petroleum and petrochemicals. In 2009, Abu Dhabi state-owned investment firm Mubadala purchased NOVA.
Now, the company has been sold to a partnership between another Abu Dhabi state-owned entity and an Austrian petrochemical giant.
A majority of oil companies in Canada are foreign-owned, but the news comes at a time when uncertainty about global trade is raising questions about the role of foreign entities in Canada.
At the end of February, the Abu Dhabi National Oil Company (ADNOC), an oil company owned by the United Arab Emirates, registered to lobby in Alberta for regulatory approvals after purchasing NOVA. ADNOC is also registered to lobby federally“to advise the government of Canada on matters related to a foreign strategic investment with regard to the acquisition of a private Canadian-based company owned by a UAE based company.”
ADNOC partnered with Austrian-owned oil and petrochemical company OMV in early March to merge their respective entities Borouge and Borealis, now known as Borouge Group, to acquire NOVA Chemicals for $13.4 billion.
A statement from NOVA Chemicals said Borouge Group International will retain key corporate hubs in Calgary, Pittsburgh and Singapore in addition to its global headquarters in Vienna and regional headquarters in Abu Dhabi.
“Once closed, this deal will mark an exciting new chapter for NOVA Chemicals, ADNOC and their portfolio of global petrochemical companies,” said the emailed statement. “Together we will be uniquely positioned to meet the growing demand for plastics while accelerating the transition to a circular economy and delivering even more value to North America.”
The transaction is slated to go through in early 2026 but is subject to regulatory approvals at the federal and provincial levels.
The Alberta Energy Regulator (AER) oversees energy projects within the province, regulating oil, oil sands, natural gas and coal projects to ensure public safety and environmental sustainability.
According to the AER’s directive, energy projects must meet requirements under applicable energy acts like the Oil and Gas Conservation Act. They must also have an agent residing in the province, have insurance coverage of at least $1 million, provide financial statements and prove to not pose an “unreasonable risk.”
A statement from the office of the Alberta Ministry of Energy and Minerals said the acquisition “shows the strong future of opportunity for investment in Alberta’s petrochemical sector, as major international companies are looking to inject their resources into this province, recognizing Alberta as a global energy leader.”
The Canada Energy Regulator (CER) operates similarly but on a federal level. Licences issued by the CER are governed by the CER Act and the National Energy Board Act.
Why do so many foreign entities own Canadian oil companies?
It is not uncommon for foreign entities to buy up or invest in Canadian oil companies. A 2023 study found that over the previous decade, ownership of Canada’s largest oil sands companies had become more and more concentrated, with just 14 prominent shareholders collectively controlling portions of Imperial Oil, Cenovus Energy, Canadian Natural Resources and Suncor.
Truzaar Dordi, lead author of the joint study with the University of York, the University of Waterloo and the University of Victoria, said ownership, especially of oil companies, is “inherently global.”
“Many large corporations, asset managers and high net worth owners are based in America,” said Dordi in an interview. “There are likely other driving factors [like] the regulatory environment, financial returns and investments into the industry from foreign entities.”
In 2019, Encana Corp., one of Canada’s largest oil and gas companies based in Alberta, moved its headquarters to the U.S. due to issues of retaining investment as the federal government implemented stringent environmental regulations on the sector. The move slashed hundreds of Canadians’ jobs.
However, a concern with global ownership is that foreign entities have more influence on how oil production operates in Canada.
“The foreign entities making these decisions based on their own personal interests ultimately affect what our fossil fuel companies decide to do,” said Dordi, adding that this is occurring in Europe and the U.S. as well. “These companies are actually increasing their production of oil, primarily pushed by shareholders to do so.”
Dordi’s study focused on how foreign ownership can impact Canada’s climate goals. But with the ongoing trade war with the U.S., global ownership could have further implications.
Katya Rhodes, a climate policy analyst who co-authored the study, said tariffs implemented by the U.S. could result in a reduction in the Canadian GDP, worsening conditions for the average consumer. But not all hope is lost.
“If we were to quickly develop relationships with reliable partners, not just within Canada, but perhaps with Europe or China, we’ll be much stronger together in international trade and the economic world,” said Rhodes.
While China is also facing higher tariffs from the U.S., it is making advancements on climate change mitigation, much like areas in Europe, that would better align with Canada’s own climate goals and encourage more investment into renewable energy.
Although international trade is a priority, Rhodes said that interprovincial trade is essential to protecting the Canadian economy.
“We need to wake up and start having better relationships between the provinces, overcome our interprovincial grievances and start trading with each other without tariffs inside of our own country,” she said.
Rhodes added that, regardless of ownership, Canada is more likely to see a decrease in oil and gas development as a result of the trade war.
“Tariffs have a direct impact on oil and gas production, but at the same time, in order to meet our own demands here, we will probably need to develop our own fossil fuels in order to meet electricity goals.”
Since U.S. President Donald Trump came into office for his second term, tariffs on oil, aluminum, steel and other commodities have been tossed back and forth, leaving industry and consumers in a constant state of uncertainty.
Olaf Weber, a professor in sustainable finance at the University of Waterloo, said the uncertainty is a nightmare for those in corporate finance.
“Policy uncertainty is the worst you can have. If you have a stable one, even if it’s bad, it’s stable. If it’s good, the better,” said Weber. “If you are an automobile company in Detroit, and every month there might be a 25-per-cent difference in all imported supplies from Canada, there is no way that you can plan your business.”
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He adds that in the end, the tariffs could be repealed, but the back and forth is already having a negative impact on financial planning in various industries.