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Released February 13, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Boardwalk Pipeline Partners LP (NYSE:BWP) (Houston, Texas), a midstream service provider for the natural gas and natural gas liquid (NGL) markets, is upbeat about its 2018 prospects, despite weaker-than-expected results for 2017 that it attributed to the restructuring of major contracts and reduced revenues from storage, parking and lending. Industrial Info is tracking more than $1 billion in active projects involving Boardwalk, more than half of which are set to begin or finish construction this year.
The company expects to spend about $550 million in 2018, including $430 million toward growth projects. Boardwalk's growth capital expenditures for 2017 were reported to be $570.5 million and maintenance capital expenditures were reported to be $137.9 million, compared with $469.1 million and $121.3 million, respectively, for 2016.
Gulf South Pipeline Company LP, a subsidiary of Boardwalk, is at work on its parent company's largest active growth project: the Coastal Bend Header Pipeline in Texas, which runs 66 miles from a connection with Tennessee Gas Pipeline (TGP) northwest of Wharton County to the Stratton Ridge Metering Station in Freeport, Texas. The line will carry about 1.54 billion cubic feet per day of natural gas to serve ConocoPhillips' (NYSE:COP) (Houston, Texas) $5.5 billion Train 1 and $5.5 billion Train 2 of the Freeport LNG Liquefaction Terminal under construction in Freeport. The proposed in-service date is in 2020, with the first phase already in service. For more information, see Industrial Info's project reports on the Coastal Bend line, Freeport Train 1 and Freeport Train 2.
The Coastal Bend Header Pipeline is supported by several other projects from Boardwalk that are under or nearing construction in Texas: a $120 million compressor station in West Columbia, which includes five compressor gas packages; a $65 million compressor station in Wharton, which includes a single package; a $40 million unit addition at a compressor station in Pineland and the $15 million modification of a compressor station in Goodrich, both of which will help to reverse the flow of the line from north to south. For more information, see Industrial Info's reports on the West Columbia, Wharton, Pineland and Goodrich projects.
In neighboring Louisiana, Boardwalk is seeking permits for a $50 million cavern conversion and a $15 million loading rack addition at the Choctaw Natural Gas and NGL Storage Cavern Complex in Plaquemine. Boardwalk is planning to convert a 6.67 billion-cubic-foot-per-day natural gas storage cavern at the complex to instead store natural gas liquids (NGL), which will be sent and received via a tanker truck that will dock at the loading rack. For more information, see Industrial Info's project reports on the cavern conversion and loading rack.
Also in Louisiana, the Gulf South subsidiary is seeking permits for a $40 million compressor station and lateral addition for the St. Charles Parish Expansion Project. The new facility will include a compressor package and about 900 feet of line to provide up to 133 million standard cubic feet per day of natural gas to Gulf South's existing system. For more information, see Industrial Info's project report.
Boardwalk's revenues for 2017 were reported to be $1.32 billion, a 1.2% increase from 2016; net income stood at $297 million, a 1.7% decrease. Among Boardwalk's major events of 2017 was the $63.6 million sale of its Flag City Processing Partners LLC subsidiary, which owned the Flag City processing plant in Edna, Texas. The sale resulted in losses and impairment charges of $47.1 million; excluding these factors, net income would have been $344.1 million for 2018. For more information, see Industrial Info's plant profile.
Among the major projects to be completed and begin service last year was the Northern Supply Access system, which carries up to 378 million standard cubic feet per day of natural gas between Ohio and the Texas Gulf Coast.
"This project, along with the Ohio-to-Louisiana access project that we placed in the service in 2016, have made Texas Gas a bidirectional pipeline," said Stanley Horton, the chief executive officer of Boardwalk, in an earnings-related conference call. "Combined, these projects represent approximately $345 million in capital, and we're placing the service on time and collectively within budget."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The company expects to spend about $550 million in 2018, including $430 million toward growth projects. Boardwalk's growth capital expenditures for 2017 were reported to be $570.5 million and maintenance capital expenditures were reported to be $137.9 million, compared with $469.1 million and $121.3 million, respectively, for 2016.
Gulf South Pipeline Company LP, a subsidiary of Boardwalk, is at work on its parent company's largest active growth project: the Coastal Bend Header Pipeline in Texas, which runs 66 miles from a connection with Tennessee Gas Pipeline (TGP) northwest of Wharton County to the Stratton Ridge Metering Station in Freeport, Texas. The line will carry about 1.54 billion cubic feet per day of natural gas to serve ConocoPhillips' (NYSE:COP) (Houston, Texas) $5.5 billion Train 1 and $5.5 billion Train 2 of the Freeport LNG Liquefaction Terminal under construction in Freeport. The proposed in-service date is in 2020, with the first phase already in service. For more information, see Industrial Info's project reports on the Coastal Bend line, Freeport Train 1 and Freeport Train 2.
The Coastal Bend Header Pipeline is supported by several other projects from Boardwalk that are under or nearing construction in Texas: a $120 million compressor station in West Columbia, which includes five compressor gas packages; a $65 million compressor station in Wharton, which includes a single package; a $40 million unit addition at a compressor station in Pineland and the $15 million modification of a compressor station in Goodrich, both of which will help to reverse the flow of the line from north to south. For more information, see Industrial Info's reports on the West Columbia, Wharton, Pineland and Goodrich projects.
In neighboring Louisiana, Boardwalk is seeking permits for a $50 million cavern conversion and a $15 million loading rack addition at the Choctaw Natural Gas and NGL Storage Cavern Complex in Plaquemine. Boardwalk is planning to convert a 6.67 billion-cubic-foot-per-day natural gas storage cavern at the complex to instead store natural gas liquids (NGL), which will be sent and received via a tanker truck that will dock at the loading rack. For more information, see Industrial Info's project reports on the cavern conversion and loading rack.
Also in Louisiana, the Gulf South subsidiary is seeking permits for a $40 million compressor station and lateral addition for the St. Charles Parish Expansion Project. The new facility will include a compressor package and about 900 feet of line to provide up to 133 million standard cubic feet per day of natural gas to Gulf South's existing system. For more information, see Industrial Info's project report.
Boardwalk's revenues for 2017 were reported to be $1.32 billion, a 1.2% increase from 2016; net income stood at $297 million, a 1.7% decrease. Among Boardwalk's major events of 2017 was the $63.6 million sale of its Flag City Processing Partners LLC subsidiary, which owned the Flag City processing plant in Edna, Texas. The sale resulted in losses and impairment charges of $47.1 million; excluding these factors, net income would have been $344.1 million for 2018. For more information, see Industrial Info's plant profile.
Among the major projects to be completed and begin service last year was the Northern Supply Access system, which carries up to 378 million standard cubic feet per day of natural gas between Ohio and the Texas Gulf Coast.
"This project, along with the Ohio-to-Louisiana access project that we placed in the service in 2016, have made Texas Gas a bidirectional pipeline," said Stanley Horton, the chief executive officer of Boardwalk, in an earnings-related conference call. "Combined, these projects represent approximately $345 million in capital, and we're placing the service on time and collectively within budget."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
