Economic Impact Study

KM_Infographic4Ohio stands to benefit from $237.3 million in economic impacts from the Utopia Pipeline proposed by Kinder Morgan, Inc. during its first five years, according to a study by Kent State University Associate Professor of Economics, Dr. Shawn M. Rohlin.

The report states the project will produce direct and indirect short-term and long-term positive benefits to Ohio’s business community and support a large workforce and high volume of economic activity in communities along the pipeline route, while meeting increased demand for energy originating from Ohio’s Utica Shale Region to help the United States become more energy independent.

The study outlines how the Utopia Pipeline will:

  • generate $4.9 million in tax revenues,
  • create 2,132 direct and indirect jobs in Ohio,
  • contribute $144.9 million to Ohio’s gross state product and
  • provide $87.5 million uplift to the Ohio economy through additional income and spending.

The pipeline will transport petroleum products ethane and ethane-propane blends through 215 miles of pipeline and 14 Ohio counties to existing Kinder Morgan infrastructure ending in Windsor, Ontario. The petroleum products will be used as feedstocks for plastics used in building and construction materials, automobile manufacturing and many consumer products, including child car seats, coolers, food wrapping materials and more.

Four sources of economic benefits created by the project are cited in the study, including:

  • Increased spending in Ohio due to the construction of the pipeline,
  • local spending from out-of- state workers while working in Ohio,
  • economic benefits from the permanent workers after the pipeline is completed,
  • and reduced manufacturing input costs for Ohio companies using plastic feedstock made from the products being transported on the Utopia Pipeline.

Rohlin, director of the Center for Entrepreneurship and Business Innovation at Kent State University, has calculated the economic impact of many events throughout the region and nation. He has produced more than 20 economic impact studies in the past five years.

Read and download the complete study below.