Shinhan Investment Corp., Samtan Co., Ltd., EIP Investment Co., Ltd., and KDB KIAMCO, together forming a South Korean-based consortium, announced their acquisition of a 50% ownership interest in the Utopia Pipeline from investment funds affiliated with Riverstone Holdings LLC. The Utopia Pipeline, a 268-mile pipeline transporting ethane from the Marcellus and Utica shales, originates in Harrison County, Ohio, and delivers to the Sarnia petrochemical market in Ontario, Canada. Riverstone initially formed a joint venture with Kinder Morgan Inc. in 2016 to construct Utopia, and Kinder Morgan will remain the pipeline's operator and continue its ownership stake.

Heejun (June) Park, President of EIP Investment, highlighted that this transaction represents a significant investment for their funds, partnering with a leading operator like Kinder Morgan. The acquisition aligns with the trend of increasing investments in US midstream assets by Korean investors, which has been growing since 2017 and is expected to continue.

The Consortium also secured debt financing for the transaction through a credit agreement with CIBC Capital Markets, ING Capital, and Societe Generale. Morgan Stanley & Co. LLC and Vison & Elkins LLP served as exclusive financial and legal advisors, respectively, to Riverstone.

 

Source: Globe News Wire