Kinder Morgan said it will sell half its interest in the Utopia Pipeline project in Ohio to private equity firm Riverstone Investment Group for an undisclosed amount that will include 50% of Kinder Morgan’s previous expenditure on the $500 million project. Riverstone will also fund its share for the final commissioning and construction of the pipeline.
The Utopia Pipeline is a common carrier project planned to include about 215 miles of new, 12-inch 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 to 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. The project is supported by a long-term contract with Nova Chemicals Corporation.