Boardwalk Pipeline, Partner to acquire PL Midstrea

Boardwalk Pipeline Partners LP (BWP) and its general partner have agreed to acquire PL Midstream LLC from PL Logistics LLC for USD 625 million in cash. This purchase comes as the company looks to diversify into industries that complement its core natural gas pipeline and storage businesses. PL Midstream provides salt-dome storage, pipeline transportation, fractionation and brine supply services for producers and consumers of petrochemicals, natural gas liquids and natural gas through southern Louisiana. Boardwalk said the company’s assets are strategically located to participate in the petrochemicals boom in the U.S. Gulf Coast region. Boardwalk Pipelines Holding, which is a Loews Corp. (L) unit, will have a 67% stake in the joint venture, while Boardwalk will own 33%. The companies are expected to contribute about USD 268 million and USD 132 million, respectively, to fund the acquisition. Boardwalk also expects the joint venture to fund the acquisition with proceeds from a USD 225-million bank loan. The deal is expected to close in late September or early October.

Previous articleFirst licence for Canadian build
Next articleKinder Morgan Energy sells some assets
Heat Exchanger World Publisher
Heat Exchanger World is a leading international magazine covering all aspects of the product supply chain of heat exchangers. Heat Exchanger World is part of the KCI Group of Companies. We are a leading knowledge, communication and information company connecting business-to-business professionals by building and sustaining global communities, solving their information needs and helping them to develop their professional life and friendships.