South Korean Consortium Acquires a 50% Interest in the Utopia Ethane Pipeline

Updated 1 year 9 months ago

On November 25, 2019, a consortium of Shinhan Investment, Samtan, EIP Investment, and KIAMCO has acquired of a 50% interest in the Utopia pipeline from investment funds affiliated with Riverstone. Originating in Harrison County, Ohio and delivering to the Sarnia petrochemical market in Ontario, Canada, Utopia is a recently-constructed 268-mi pipeline that transports ethane sourced from the Marcellus and Utica shales. In 2016, Riverstone formed a joint venture with Kinder Morgan to construct Utopia. Kinder Morgan will remain the pipeline’s operator and continue its ownership in the joint venture.

CIBC Capital Markets acted as exclusive financial advisor and Lee & Ko and Winston & Strawn acted as legal advisors for the consortium. Additionally, the Consortium has entered into a credit agreement with CIBC Capital Markets, ING Capital, and Société Générale to provide debt financing to support the transaction. Morgan Stanley and Vinson & Elkins acted as exclusive financial and legal advisors to Riverstone.