Boardwalk Pipeline Partners has agreed to acquire the Evangeline ethylene pipeline system from Chevron Pipe Line Company.
Boardwalk will purchase Chevron Petrochemical Pipeline LLC, which owns Evangeline, for $295 million in cash. When the transaction is completed Evangeline will be operated by Boardwalk Louisiana Midstream (BLM), a subsidiary of Boardwalk that provides transportation and storage services for ethylene and natural gas liquids, natural gas storage and brine supply services for producers and consumers of petrochemicals.
The Evangeline system is a 176-mile interstate pipeline that is supported by long-term, fee-based contracts. It has the capacity to transport approximately 2.6 billion pounds of ethylene per year between Port Neches, Texas, and Baton Rouge, Louisiana. It interconnects with the BLM ethylene distribution system that includes the company's storage facilities at its Choctaw Hub. BLM also plans to connect Evangeline to storage facilities at its Sulphur Hub in the Lake Charles area.
Boardwalk expects to complete the acquisition in the fourth quarter of 2014, subject to customary closing conditions.
"The acquisition of Evangeline will further enhance our ability to provide reliable and flexible ethylene transportation and storage services to petrochemical customers in the growing Gulf Coast market," commented Kevin Miller, president of BLM.