Boardwalk Pipeline Partners, LP (NYSE: BWP) ("Boardwalk") announced Wednesday that it has entered into a definitive agreement with Chevron Pipe Line Company to acquire Chevron Petrochemical Pipeline LLC which owns the Evangeline ethylene pipeline system ("Evangeline") for $295 million in cash, subject to customary adjustments. The acquisition is expected to close in the fourth quarter of 2014, subject to customary closing conditions, after which Evangeline will be operated by Boardwalk Louisiana Midstream ("BLM"), a subsidiary of Boardwalk.
The Evangeline system is a 176-mile interstate pipeline capable of transporting approximately 2.6 billion pounds of ethylene per year and is supported by long-term, fee-based contracts. Evangeline transports ethylene between Port Neches, Texas, and Baton Rouge, Louisiana, where it interconnects with the BLM ethylene distribution system that includes BLM's storage facilities at the Choctaw Hub. BLM provides transportation and storage services for ethylene and natural gas liquids (NGLs), natural gas storage, and brine supply services for producers and consumers of petrochemicals through two hubs in southern Louisiana. BLM plans to connect Evangeline to its storage facilities at BLM's Sulphur Hub in the Lake Charles area after the acquisition is completed.
"Evangeline is a great strategic fit with BLM, which currently has one of the most extensive ethylene distribution systems in Louisiana. 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," said Kevin Miller, president of BLM.