Kinder Morgan Gets a 50% Partner for Utopia Ethane Pipeline in OH

Utopia map
Utopia map – click for larger version

In December 2013 Kinder Morgan announced they plan to build a new 12-inch ethane pipeline through Ohio, dubbed “Utopia” for Utica To Ontario Pipeline Access (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). Utopia will run ~215 miles and will only be built in Ohio, before it connects to another pipeline that goes to Canada, therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting the pipeline. Utopia has been less controversial than other pipeline projects in Ohio, like NEXUS (see Why is UTOPIA Pipeline Less “Controversial” than NEXUS in Ohio?). The 50,000 barrels per day of ethane flowing through it will go to NOVA Chemical’s Corunna cracker plant in Sarnia–a plant we wrote about just yesterday (see Canadian Cracker Eyes Utica Ethane, Adding $2B Polyethylene Plant). Kinder Morgan has announced they are taking on a joint venture partner in the Utopia project. Riverstone Investment Group will become a 50% owner in the project in return for putting up 50% of the cost–or $250 million out of the $500 million it will take to build it…

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