Boardwalk Pipeline Partners, LP (NYSE: BWP) is a midstream master limited partnership that provides transportation, storage, gathering and processing of natural gas and liquids for its customers. In 2012 our systems carried approximately 12% of the nation's average daily consumption of natural gas. Through our subsidiaries, we own and operate approximately 14,410 miles of interconnected natural gas pipelines, directly serving customers in twelve states and indirectly serving customers throughout the northeastern and southeastern United States through numerous interconnections with unaffiliated pipelines. We also operate more than 240 miles of natural gas liquids (“NGLs”), olefins and brine pipelines, including the most extensive ethylene distribution system in Louisiana. Our subsidiaries' storage facilities have an aggregate working gas capacity of approximately 201 billion cubic feet (bcf) and liquids capacity of approximately 18 million barrels. In addition, the company is constructing a 150 million cubic feet per day (MMcf/d) cryogenic gas processing plant near Edna, Texas, which is expected to be placed in service in April 2013 and is part of the Boardwalk Field Services’ South Texas Eagle Ford Expansion project.
We serve a broad mix of customers, including producers, local distribution companies (LDCs), marketers, electric power generators, direct industrial users and interstate and intrastate pipelines. We provide a significant portion of our pipeline transportation and storage services through firm contracts under which our customers pay monthly capacity reservation charges (which are charges owed regardless of actual pipeline or storage capacity utilization). Other charges are based on actual utilization of the capacity under firm contracts and contracts for interruptible services. For the twelve months ended December 31, 2012, approximately 83% of our revenues were derived from capacity reservation charges under firm contracts, approximately 11% of our revenues were derived from charges based on actual utilization under firm contracts and approximately 6% of our revenues were derived from interruptible transportation, interruptible storage, parking and lending (PAL) and other services.
Boardwalk has six operating subsidiaries:
- Texas Gas Transmission originates in Louisiana, East Texas and Arkansas and runs north and east through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, Indiana, and into Ohio, with smaller diameter lines extending into Illinois. The market area directly served by Texas Gas encompasses eight states in the South and Midwest and includes the Memphis, Tennessee; Louisville, Kentucky; Cincinnati and Dayton, Ohio; and Evansville and Indianapolis, Indiana metropolitan areas. Texas Gas also has indirect market access to the Northeast through interconnections with unaffiliated pipelines. A large portion of the gas delivered by the Texas Gas system is used for heating during the winter months, resulting in higher daily requirements during winter months.
- Gulf South Pipeline Company, LP is located along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. The on-system markets directly served by the Gulf South system are generally located in eastern Texas, Louisiana, southern Mississippi, southern Alabama, and the Florida panhandle. These markets include LDCs and municipalities located across the system, including New Orleans, Louisiana; Jackson, Mississippi; Mobile, Alabama; and Pensacola, Florida;, and end-users located across the system, including the Baton Rouge to New Orleans industrial corridor and Lake Charles, Louisiana. Gulf South also has indirect access to off-system markets through numerous interconnections with unaffiliated interstate and intrastate pipelines and storage facilities. These pipeline interconnections provide access to markets throughout the northeastern and southeastern U.S.
- Gulf Crossing Pipeline Company LLC originates near Sherman, Texas and proceeds to the Perryville, Louisiana area. The market areas for Gulf Crossing are in the Midwest, Northeast, Southeast and Florida through interconnections with Gulf South, Texas Gas and unaffiliated pipelines.
- Petal Gas Storage, LLC (formerly Boardwalk HP Storage Company) operates seven high deliverability salt dome natural
gas storage caverns in Forrest County, Mississippi, having approximately 36 Bcf
of total storage capacity, of which approximately 23 Bcf is working gas
capacity. Petal also operates approximately 105 miles of pipelines that
connect with several major natural gas pipelines, including its affiliate Gulf
South Pipeline Company, LP, and owns undeveloped land that is suitable for up
to six additional storage caverns, one of which is expected to be placed in
service in the second quarter of 2013. Boardwalk
acquired Petal Gas Storage, LLC and Hattiesburg Industrial Gas Sales, LLC natural gas storage companies in
December 2011 and formed Boardwalk HP
Storage Company, LLC, which was renamed Petal Gas Storage LLC in May 2013.
- Boardwalk Field Services, LLC is focused on developing and operating gas gathering, compression, dehydration, treating, and processing infrastructure. Boardwalk Field Services currently has two projects under construction: the South Texas Eagle Ford Expansion and the Marcellus Gathering System. When fully constructed, the South Texas Eagle Ford Expansion will have approximately 300 MMcf/d of rich gas gathering capacity and 150 MMcf/d of processing capacity, and the Marcellus Gathering System located in Pennsylvania is expected to have a delivery capacity of approximately 0.3 Bcf/d.
- Boardwalk Louisiana Midstream, LLC is a midstream NGLs company with transportation and storage assets that are strategically located to participate in the resurgent petrochemicals industry in the U. S. Gulf Coast region. Boardwalk Louisiana Midstream has attractive, fee-based contracts with a weighted-average life of approximately ten years. Boardwalk Louisiana Midstream provides salt-dome storage, pipeline transportation, fractionation and brine supply services for producers and consumers of petrochemicals, NGLs and natural gas through two hubs in southern Louisiana: the Choctaw Hub in the Mississippi River Corridor and the Sulphur Hub in the Lake Charles area. These assets represent approximately 53 million barrels of salt dome storage capacity, including 11 bcf of working natural gas storage capacity; significant brine supply infrastructure; and more than 240 miles of pipeline transportation assets, including the most extensive ethylene distribution system in Louisiana. Boardwalk acquired Boardwalk Louisiana Midstream (formerly PL Midstream) in October 2012, and this acquisition diversified Boardwalk’s operations into the natural gas liquids business.