Kinder Morgan Energy Partners announced yesterday that it has received a long-term transportation agreement from NOVA Chemicals Corporation to transport ethane and ethane-propane mixtures from the prolific Utica shale area through its previously announced Utica To Ontario Pipeline Access (UTOPIA) project, which is currently in a binding open season that began Sept. 5, 2014, and will close on Oct. 6, 2014.
As part of the UTOPIA project, Kinder Morgan Cochin will develop, construct, own and operate a 240-mile, 12-inch diameter pipeline from Harrison County, Ohio, to Kinder Morgan’s Cochin Pipeline near Riga, Michigan, where the company would then move product eastward to Windsor, Ontario, Canada. UTOPIA would have an initial 50,000 barrels per day (bpd) of capacity, which is expandable to more than 75,000 bpd. The approximately $500 million pipeline project is expected to be in service by early 2018 with the receipt of timely permitting and regulatory approvals.
“We are pleased to partner with NOVA Chemicals to provide a long-term solution for moving ethane and ethane-propane mixtures out of the Utica shale,” said Don Lindley, president of Natural Gas Liquids, Products Pipelines for KMP. “Although we will continue to solicit additional volume commitments, this transportation agreement provides the necessary commitment level required to move forward with the project, and that is exciting news for the growing Ontario market.”
“This pipeline project supports NOVA Chemicals’ growth strategy—providing our Corunna, Ontario, facility with diversity of supply by accessing feedstock from new and existing producers in the growing Utica shale basin, in addition to our current feedstock supply,” said Grant Thomson, president of Olefins and Feedstocks for NOVA Chemicals.
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