Boardwalk Pipeline Partners LP has agreed to buy Chevron Petrochemical Pipeline LLC—including the 176-mile Evangeline ethylene pipeline—from Chevron Pipe Line Co.Evangeline is a 2.6-billion lb/year interstate pipeline supported by long-term, fee-based contracts. It extends between Port Neches, Tex., and Baton Rouge, La., where it interconnects with the Boardwalk Louisiana Midstream’s (BLM) ethylene distribution system, including storage at the Choctaw Hub.
BLM provides transportation and storage services for ethylene and NGLs, natural gas storage, and brine supply services for petrochemical producers and consumers through two hubs in southern Louisiana: Choctaw and Sulphur Hub near Lake Charles, La. The company plans to connect Evangeline to storage at Sulphur Hub after the acquisition is completed.
Deutsche Bank acted as exclusive financial advisor to Boardwalk on the $295-million purchase. Boardwalk expects close in the fourth quarter, subject to customary conditions, after which BLM will assume operations.
BLM earlier this year agreed to provide Sasol Chemicals (USA) LLC long-term ethane and ethylene storage and transportation services related to Sasol’s proposed integrated ethane cracker and downstream derivatives complex near Westlake, La. (OGJ Online, May 1, 2014). Sasol expects to reach final investment decision on the complex by yearend (OGJ, July 7, 2014, p. 97).