Boardwalk To Acquire Enterprise Gas Storage Units

By Houston Business Journal

Boardwalk Pipeline Partners LP (NYSE: BWP) said this week it has formed a joint venture, Boardwalk Pipelines Holding Corp. (BPHC) to purchase two natural gas storage companies from Enterprise Products Partners LP for $550 million in cash.

The two companies being acquired are Petal Gas Storage LLC and Hattiesburg Gas Storage Co., which together operate seven salt dome natural gas storage caverns in Forrest County, Miss.

Funding is expected to come from a $200 million, five-year bank loan and equity contributions from Houston-based Boardwalk and its general partner in the joint venture.

BPHC will own 80 percent and contribute $280 million of the joint ventureâ¿¿s equity and Boardwalk will own 20 percent and contribute $70 million. The acquisition is expected to close in the fourth quarter of 2011.

Gardere Wynne Sewell LLP in Houston represented Boardwalk and Vinson & Elkins LLP represented Houston-based Enterprise (NYSE: EPD) in the negotiations.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/houston/news/2011/10/20/boardwalk-to-acquire-enterprise-gas.html?ana=thestreet

Copyright bizjournals.com 2010

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