Australia All Ordinaries
10.09.2008 19:50:00
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Boardwalk Announces Binding Open Season for an Expansion of Its Gulf South Pipeline System
Boardwalk Pipeline Partners, LP (NYSE:BWP) announced today that its subsidiary Gulf South Pipeline Company, LP is conducting a Binding Open Season to solicit commitments to support an expansion of its new East Texas to Mississippi 42-inch pipeline in order to serve increased production out of East Texas and the Haynesville Shale.
"Natural gas production volumes from the Barnett Shale and conventional plays in Northeast Texas and Northwest Louisiana continue to exceed expectations”, said Brian Cody, Boardwalk Pipeline Partners’ Chief Commercial Officer. "Anticipated new production from the emerging Haynesville Shale play in Northwest Louisiana coupled with the increasing volume from Texas provide a significant long-term demand for additional pipeline take-away capacity. Gulf South is uniquely positioned to efficiently expand its existing 42-inch pipeline to meet the needs of its customers.”
An expansion of the Gulf South 42-inch pipeline will provide much needed export capacity for producers in these rapidly growing areas to provide access to the Midwest and Northeast markets through interconnections with Texas Gas and other Interstate pipelines in the Perryville area, as well as access to the pipelines serving the Southeast Markets through the Gulf South system and connection with the Southeast Supply Header.
Upon obtaining sufficient commitments in the Binding Open Season, Gulf South plans to expand its existing system by 500,000 MMBtu per day with compression subject to FERC approval. The specific facilities required and expansion design capacity will be subject to the results of the Open Season. Additionally, based upon the results of this Open Season, Gulf South may pursue further expansions of its capacity beyond the initial expansion of 500,000 MMBtu per day.
Pursuant to the procedures defined in the Open Season, binding bids for capacity on this expansion should be received by Gulf South by 3:00 p.m. CDT on Monday, October 6, 2008. For additional information, please contact Rick Whitworth, Vice President of Business Development at (713) 479-8644 or Steve Noe, Vice President of Business Development at (713) 479-8126 or visit the Gulf South website at www.gulfsouthpl.com.
Boardwalk Pipeline Partners, LP is a master limited partnership engaged through its subsidiaries, Gulf South Pipeline Company, LP and Texas Gas Transmission, LLC, in the interstate transportation and storage of natural gas. Boardwalk's two interstate natural gas pipeline systems have approximately 13,660 miles of pipeline and underground storage fields with aggregate working gas capacity of approximately 155 Bcf.
This press release contains forward-looking statements within the meaning of the federal securities laws relating to expectations, plans or prospects for Boardwalk and its subsidiaries, including those relating to whether or not the Company will successfully complete the expansion discussed above, the cost and timing of any such projects and the future financial performance of those assets. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company's control and the risk factors and other cautionary statements discussed in Boardwalk's filings with the U.S. Securities and Exchange Commission.
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