Riverstone investment Group has become a 50% partner in Kinder Morgan’s Utopia Pipeline Project.
The pipeline will connect growing ethane supply sources in Ohio to the expanding petrochemical market in Sarnia. 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. The project is supported by a long-term contract with Nova Chemicals Corporation.
Don Lindley, president of Kinder Morgan’s natural gas liquids products pipelines says: ‘This agreement also demonstrates our ability to originate projects with attractive returns that partners are willing to pay to participate and invest in.
The pipeline is a common carrier project that will include approximately 215 miles of new pipeline constructed within Ohio from Harrison County to Fulton County. The will transport ethane and ethane-propane mixtures to petrochemical companies operating Ontario, Canada for use as a feedstock in the production of plastics.