FORREST COUNTY — A Boardwalk Pipeline Partners, LP subsidiary has purchased the remaining 80 percent equity interest in Boardwalk HP Storage Company, LLC, from Boardwalk Pipelines Holding Corp., a wholly-owned subsidiary of Loews Corporation and the parent of our general partner, for approximately $285 million, which is the same price paid by BPHC when it acquired this interest in December 2011.
This transaction was approved by the independent Conflicts Committee of the board of directors. “Acquiring the remaining ownership interest in Boardwalk HP Storage was one of our key goals for 2012,” said Stan Horton, president and CEO of Boardwalk. “Boardwalk has been operating these assets since they were acquired in December 2011 and the transition has gone extremely well.”
Boardwalk HP Storage operates seven high deliverability salt dome natural gas storage caverns in Forrest County having approximately 29 billion cubic feet (Bcf) of total storage capacity, of which approximately 19 Bcf 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.