• Houston's Kinder Morgan launched a new pipeline system in Ohio's Utica shale play. The company also has plans to capitalize on the West Texas shale boom. Photo: Kinder Morgan / handout
Photo: Kinder Morgan
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Houston's Kinder Morgan launched a new pipeline system in Ohio's Utica shale play. The company also has plans to capitalize on the West Texas shale boom.
Houston's Kinder Morgan launched a new pipeline system in Ohio's Utica shale play. The company also has plans to capitalize on the West Texas shale boom.
Photo: Kinder Morgan

Kinder Morgan on Tuesday placed into service a 270-mile transnational pipeline system that capitalizes on Ohio's productive Utica shale play.

The Houston-based pipeline operator developed the $500 million Utopia system to deliver ethane products from eastern Ohio to Windsor, Ontario. The company has a long-term contract with Canada's NOVA Chemicals Corporation, which will use the products as feedstock for plastics production.

The system, which now carries 50,000 barrels per day, could be expanded to transport as many as 75,000 barrels daily.

RELATED: Kinder Morgan to move ahead with $1.7 billion pipeline

Kinder Morgan, which recently reported lower fourth-quarter earnings thanks to a one-time tax charge, is also eyeing the West Texas shale boom. The company plans to build a $1.7 billion gas pipeline from the Permian basin to the Corpus Christi area in partnership with two other pipeline companies.

Apache Corp., which has been highly active near Balmorhea, will be the primary customer.  The project is expected to begin operating by October 2019.