October 2012, Vol. 239 No. 10

In The News

Boardwalk, General Partner Acquire PL Midstream

Boardwalk Pipeline Partners, LP has formed a joint venture with an affiliate of its general partner, which has entered into an agreement to acquire PL Midstream LLC from PL Logistics LLC, a portfolio company of Lindsay Goldberg, LLC, for $625 million in cash.

“The PL Midstream acquisition supports our long-term growth strategy of diversifying into industries that complement our core natural gas pipeline and storage businesses,” said Stan Horton, Boardwalk’s president and CEO. “This acquisition enables Boardwalk to enter the natural gas liquids business with strategically located and well-contracted assets and a strong, experienced management team. We are expanding into a business with similar operational and financial characteristics to our core businesses, yet a different commodity market environment.”

PL Midstream is described as a rapidly growing midstream company with assets strategically located to participate in the resurgent petrochemicals boom in the U. S. Gulf Coast region and has attractive, fee-based contracts with a weighted-average life of ten years. The company 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.