HOUSTON--(BUSINESS WIRE)--Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has received a long-term transportation agreement from NOVA Chemicals Corporation (NOVA Chemicals) 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.
Additional documents and details related to the open season will be made available upon completion of a confidentiality agreement. Those interested in obtaining more detailed information about this open season can visit the Kinder Morgan web site at www.kindermorgan.com or contact Karen Kabin, vice president of business development in Kinder Morgan’s Products Pipelines group, at Karen_Kabin@kindermorgan.com or (713) 369-9268.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 54,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $125 billion. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interests of KMP and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in Kinder Morgan’s reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.