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Kinder Morgan to connect USA and Canada through UTOPIA project

Kinder Morgan UTOPIA to export Utica NGL to Ontario

The North America midstream leader Kinder Morgan Inc. (Kinder Morgan) is preparing, through its subsidiary Kinder Morgan Energy Partners L.P., the construction of the Utica to Ontario Pipeline Access (UTOPIA) pipeline to export refined or fractionated natural gas liquids (NGL) from the Utica shale gas basin in the northeast of USA to the Ontario Province in Canada.

Operating more than 120,000 kilometers pipelines and 180 terminals in North America, Kinder Morgan is exploring all opportunities to expand its pipeline system to facilitate the monetization of the shale gas and associated NGL over-produced in USA.

Kinder-Morgan-Utopia-Pipeline-Project_MapSince the Canadian Province of Ontario is continuously growing and calling for more petrochemical building blocks, it offers a great opportunity to import NGL from the neighboring producing locations.

In that respect the Utica shale gas basin in the bordering State of Ohio of USA lies at much shorter distance than the Alberta and British Columbia liquid rich shale gas basins on the west side of Canada.

In addition the west-to-east transportation infrastructures are still short in Canada compared with the existing north-to-south pipeline system.

In this context, the opportunity to connect the US Utica basin to the Canadian pipelines system with UTOPIA project popped up on Kinder Morgan radars.

Kinder Morgan to build-own-operate UTOPIA pipeline

On September 5th 2014, Kinder Morgan started the binding open season to gather all proposals of NGL transportation through the UTOPIA project.

On September 29th 2014, Kinder Morgan and Nova Chemicals Corporation (Nova Chemicals) signed a long-term agreement to carry on ethane and ethane-propane mixed products through the Utica to Ontario pipeline.

On October 6th 2014, Kinder Morgan closed the open season.

Kinder-Morgan-Utopia-Pipeline-ProjectAccording to the feasibility study, the UTOPIA project should leave from the Harrison County in Ohio to connect near Riga in Michigan, with the existing Kinder Morgan Cochin pipeline.

This Kinder Morgan Cochin pipeline is then currently delivering Windsor in Ontario, Canada.

To ensure the continuity of operation from the Utica shale gas basin in Ohio to Ontario, Kinder Morgan Cochin will design, build own and operate the US-based UTOPIA pipeline project.

The new UTOPIA pipeline should have a 12-inch and should run along 360 kilometers across Ohio.

In a first phase, the UTOPIA pipeline should be designed for a capacity of 50,000 barrels per day (b/d).

In a second phase, Kinder Morgan would expand capacity up to 75,000 b/d.

In this UTOPIA project, Kinder Morgan will invest $500 million capital expenditure.

Still waiting for all the required regulatory approvals, Kinder Morgan expect to start first commercial operations with the UTOPIA pipeline project in 2018.

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