This post is originally from Oil & Gas Journal.
Riverstone Investment Group LLC will become a 50-50 partner with Kinder Morgan Inc. in the $500-million Utopia pipeline project in Ohio.
To acquire its stake, Riverstone agreed to an upfront cash payment reimbursing KMI for its 50% share of prior capital expenditures related to the project. Riverstone also agreed to fund its share of future capital expenditures necessary to complete construction and commissioning.
The common carrier project, supported by a long-term contract with Nova Chemicals Corp., will include 215 miles of 12-in. pipeline constructed entirely within Ohio from Harrison County to Fulton County (OGJ Online, Sept. 4, 2014). The pipeline will connect with an existing KMI pipeline and associated facilities to transport ethane and ethane-propane mixtures to petrochemical companies in Ontario.