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Kinder Morgan sells 50% stake in Ohio NGL pipeline to Riverstone
HOUSTON, June 28, 2016 (PCW) –- Kinder Morgan on Tuesday said it had sold a 50% stake in its Utopia NGL pipeline in Ohio to private equity firm Riverstone Investment Group.
Riverstone will provide an upfront cash payment provided at closing as a reimbursement to Kinder Morgan for its 50% share of prior capital expenditures on the project, as well as a payment in excess of capital expenditures.
The project has a budget of $500 million.
Riverstone has also agreed to fund its share of future capital expenditures necessary to complete construction and commissioning of the pipeline project.
The 215-mile, 12-inch diameter pipeline will run from Harrison to Fulton counties in Ohio. It will connect with an existing Kinder Morgan pipeline and associated facilities in order to transport ethane and ethane-propane mixtures to petrochemical companies in Ontario, Canada.
The project is anchored by long-term commitments from Nova Chemical. It will have an initial capacity of 50,000 b/d, which can be expanded to 75,000 b/d. It has a targeted in-service date of January 2018. –- Samantha Hartke