STRATEGY

 

Our key growth objectives are to continue to expand the reach of our core assets to additional market outlets and supply sources and to broaden our service offerings in the midstream segment, through a combination of acquisitions and organic growth initiatives. While executing this growth strategy, we remain committed to operational excellence, with safety, reliability and compliance as the underlying fundamentals in all that we do.

 

Execute Existing Expansion Projects, Including:

 

  • The Southeast Market Expansion project is designed to increase Gulf South's ability to transport natural gas supplies to growing areas of demand in the southeast region of the United States, including industrial and power generation markets in Mississippi, Alabama and Florida, by constructing an interconnection between Gulf South and Petal, adding additional compression facilities and constructing approximately 70 miles of pipeline in southeastern Mississippi. This project will add approximately 450 MMcf/d. The anticipated in service date is the second half 2014 and the estimated cost is approximately $300 million.
  • The South Texas Eagle Ford Expansion includes 55 miles of gathering pipeline and a 150 MMcf/d cryogenic gas processing plant near Edna, Texas that is expected to be placed into service in April 2013. When complete, this expansion project will be approximately 400 miles of pipeline with the capability of gathering 300 MMcf/d of liquids-rich gas.
  • Petal Gas Storage Salt-Dome Expansion project includes the development of a new salt dome storage cavern having a working gas capacity of approximately 5 Bcf. This project is anticipated to be in service in the second quarter 2013 and cost approximately $23 million.
  • Choctaw Brine Supply Expansion Projects that involve (a) the development of a one million barrel brine pond, which was placed in service in January 2013, and (b) the construction of 26 miles of pipeline from our facilities to a petrochemical customer's plant, which is to be placed in service in the third quarter 2013. The total estimated cost of these projects is approximately $63 million.

 

Develop Additional Demand-Side Opportunities: 

 

  • Add flexible services for power generation market
  • Develop high deliverability storage capabilities
  • Enhance supply optionality and liquidity
  • Expand system capacity where needed
  • Build on our existing power generation and industrial relationships (currently directly connected to approximately 40 natural gas-fired power plants and approximately 170 industrial locations)

 

Attach New Supply Sources:

 

  • Connect to emerging shale plays, such as the Utica, Cana and Tuscaloosa Marine
  • Provide producers with liquidity and access to diverse end-use markets

 

Offer Greater Array of Services to Producer Customers:

 

  • Formed Boardwalk Field Services in 2011
  • Attach new gas supplies
  • Focus on liquids-rich plays
  • Leverage BWP’s existing footprint
  • Follow existing customers and target prospective customers

 

Further Diversification Within Midstream Energy Value Chain:

 

  • Acquired Boardwalk Louisiana Midstream in October 2011  
  • Continue to evaluate midstream opportunities involving NGLs and crude oil