Kinder Morgan announces letter of intent with NOVA for new pipeline
Kinder Morgan Energy Partners, L.P. has announced that its subsidiary, Kinder Morgan Cochin LLC has signed a letter of intent with NOVA Chemicals Corporation (NOVA) to develop a new products pipeline from the Utica Shale.
Under the agreement, Kinder Morgan Cochin will develop, construct, own and operate a 210 mile, 10 in. dia. pipeline from multiple fractionation facilities in Harrison County, Ohio, to Kinder Morgan’s Cochin Pipelines near Riga, Michigan, where the company will then move product via Cochin east to Windsor, Onario, Canada.
UTOPIA
The proposed approximately US$ 400 million Kinder Morgan Utica to Ontario Pipeline Access (UTOPIA) would transport previously refined or fractioned natural gas liquids (NGLSs) including ethane and propane.
The pipeline is expected to have an initial 50 000 bpd of capacity, which is expandable to more than 75 000 bpd. A mid-year 2017 in-service date is anticipated, pending NOVA’s execution of a definitive agreement during the binding open season process (expected in 2014) and timely receipt of necessary permitting and regulatory approvals.
Growing Ontario market
“We are excited to have this opportunity to continue to provide a pipeline transportation solution for the growing Ontario market,” said Don Lindley, President of Natural Gas Liquids Business Development. “This proposal will complement our existing transportation solutions for NGLs produced in the Utica, allowing producers to choose between mixed NGLs to the Gulf Coast or previously fractionated NGLs to nearby demand centers.”
The Cochin Pipeline is a multi-product pipeline consisting of approximately 1900 miles of 12 in. pipeline operating between Fort Saskatchewan, Alberta, and Windsor, Ontario. Cochin currently transports propane and ethane-propane mix to petrochemical and fuel markets in Ontario. Construction continues on the Cochin Reversal project, which will move light condensate from Kankakee County, Ill., to existing terminal facilities near Fort Saskatchewan, Alberta, beginning in July 2014.
Adapted from press release by Hannah Priestley-Eaton
Read the article online at: https://www.worldpipelines.com/business-news/17122013/kinder_morgan_announces_letter_of_intent_with_nova_for_new_pipeline/
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