Boardwalk Pipeline Partners, LP announced Friday that its subsidiary, Gulf Crossing Pipeline Company LLC, has entered into binding transportation agreements to transport an additional 300 million cubic feet per day (MMcf/d) of natural gas on its interstate pipeline which is currently under construction. Boardwalk has executed a ten year firm transportation agreement with Chesapeake Energy Corporation to transport 150 MMcf/d and a ten year firm transportation agreement with XTO Energy, Inc. that will begin at 75 MMcf/d when the project is placed into service and will increase to 150 MMcf/d by 2011.
Gulf Crossing will consist of approximately 357 miles of 42-inch pipeline that will originate near Sherman, Texas, and proceed to the Perryville, La., area. As currently being constructed and with these new firm agreements, Gulf Crossing is fully committed at 1.4 Bcf/d with a weighted average contract life of approximately 9.5 years. Boardwalk expects this project to be in service during the first quarter 2009.
Boardwalk Pipeline Partners, LP is a master limited partnership engaged through its subsidiaries, Gulf South Pipeline Company, LP and Texas Gas Transmission, LLC, in the interstate transportation and storage of natural gas. Boardwalk's two interstate natural gas pipeline systems have approximately 13,660 miles of pipeline and underground storage fields with aggregate working gas capacity of approximately 155 Bcf.
