Boardwalk Announces Additional Commitments on Gulf Crossing
HOUSTON--(Business Wire)-- Boardwalk Pipeline Partners, LP (NYSE:BWP) announced today that its subsidiary, Gulf Crossing Pipeline Company LLC, has entered into binding transportation agreements to transport an additional 300 million cubic feet per day (MMcf/d) of natural gas on its interstate pipeline which is currently under construction. Boardwalk has executed a ten year firm transportation agreement with Chesapeake Energy Corporation to transport 150 MMcf/d and a ten year firm transportation agreement with XTO Energy, Inc. that will begin at 75 MMcf/d when the project is placed into service and will increase to 150 MMcf/d by 2011. Gulf Crossing will consist of approximately 357 miles of 42-inch pipeline that will originate near Sherman, Texas and proceed to the Perryville, Louisiana area. As currently being constructed and with these new firm agreements, Gulf Crossing is fully committed at 1.4 Bcf/d with a weighted average contract life of approximately 9.5 years. Boardwalk expects this project to be in service during the first quarter 2009. 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 the commencement of construction and the completion of the Gulf Crossing Pipeline project. 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. Boardwalk Pipeline Partners Jamie Buskill, 713-479-8082 Sr. Vice President and Chief Financial Officer or Petra Tabor, 866-913-2122 Investor Relations Copyright Business Wire 2008
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