Kinder Morgan Energy Partners recently announced the receiving of its transportation agreement with Nova Chemicals Corp. Nova Chemicals Corp. is headquartered in Alberta, Canada; however holds its operations in Moon Township. The company will receive ethane-propane and ethane mixtures from end to end Utica to Ontario Pipeline Access (UTOPIA) project.
Although more capacity is available within this project, through this deal, the project can advance to higher levels.
Currently, the UTOPIA project is open for shippers to reserve certain capacity. According to Kinder Morgan, the open season began on September 5, and will close on October 6.
The UTOPIA pipeline project instills growth strategy in Nova Chemicals. The facility is provided with a variety of supplies in the budding areas of Utica shale basin. The project also gives access to feedstock from new and existing producers, in addition to the present feedstock supply, commented President of Olefins and Feedstock, Grant Thomson, Nova Chemicals in a statement.
The company plans to move product to its new project that spans from Harrison County, Ohio to Riga, Michigan. Kinder Morgan Cochin has a plan to build a total 240-mile project and move product eastward to Ontario (Windsor).
UTOPIA is expected to be up and running in service by 2018. It would have 50,000 barrels per day of capacity aiming to expand to more than 75,000 barrels per day of capacity by 2018.
Don Lindley, President for KMP said in a statement that the transportation agreement facilitates all the necessary requirements and commitments to move forward with the project. This project is exciting news for the growth of the Ontario market.