Kinder Morgan Energy Partners, L.P. 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-inch diameter pipeline from multiple fractionation facilities in Harrison County, Ohio, to Kinder Morgan's Cochin Pipeline near Riga, Mich., where the company will then move product via Cochin east to Windsor, Ontario, Canada.

The proposed approximately $300 million Kinder Morgan Utica To Ontario Pipeline Access (UTOPIA) would transport previously refined or fractionated natural gas liquids (NGLs), including ethane and propane. The pipeline is expected to have an initial 50,000 barrels per day (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 (which is expected in 2014) and timely receipt of necessary permitting and regulatory approvals.

Tags: Kinder Morgan Energy Partners