Kinder Morgan sells 50% equity stake in Utopia Pipeline ProjectStaff writer ▼ | June 29, 2016
Kinder Morgan said that Riverstone Investment Group LLC (Riverstone) will become a 50 percent partner in the Utopia Pipeline Project.
Selling The Utopia Pipeline is a common carrier project
In addition to the acquisition of the existing assets, Riverstone has agreed to fund its share of future capital expenditures necessary to complete construction and commissioning of the pipeline project. The total project cost is estimated to be approximately $500 million excluding capitalized interest.
The Utopia Pipeline is a common carrier project that will include approximately 215 miles of new, 12-inch diameter pipeline constructed entirely within the state of Ohio from Harrison County to Fulton County.
The pipeline will connect with an existing Kinder Morgan pipeline and associated facilities in order to transport ethane and ethane-propane mixtures to petrochemical companies operating in Ontario, Canada, for use as a feedstock in the production of plastics that will ultimately be made into automotive parts, bottles, containers, home furnishings and other common plastic products.
These products will be distributed to manufacturers, businesses and homes throughout the Great Lakes region. ■