Boardwalk Pipeline Takes 80% Stake In Mississippi-Based Gas Storage Business

Bought company with 7 salt dome gas storage caverns in Forrest County, MS, gaining 29 Bcf total storage capacity.

A subsidiary of Boardwalk Pipeline Partners LP, Houston, (NYSE: BWP) has purchased the remaining 80% equity interest in Boardwalk HP Storage Co. LLC from Boardwalk Pipelines Holding Corp., a subsidiary of Loews Corp. (NYSE: L) and the parent of Boardwalk Pipeline’s general partner, for approximately $285 million.

This is the same price paid by Boardwalk HP Storage when it acquired this interest in December 2011.

Boardwalk HP Storage operates seven high deliverability salt dome natural gas storage caverns in Forrest County, Mississippi, having approximately 29 billion cubic feet of total storage capacity, of which approximately 19 billion cubic feet is working gas capacity. The acquired businesses also own undeveloped land which is suitable for up to six additional storage caverns, one of which is expected to be placed in service in 2013 at an incremental cost of approximately $35 million.

“Acquiring the remaining ownership interest in Boardwalk HP Storage was one of our key goals for 2012,” says Stan Horton, president and chief executive of Boardwalk. "Boardwalk has been operating these assets since they were acquired in December 2011 and the transition has gone extremely well.”