Chevron Petrochemical Pipeline LLC, which owns a 176-mile interstate pipeline that transports ethylene between Port Neches, Texas, and Baton Rouge, is being sold for $295 million to Boardwalk Pipeline Partners LP in Houston.
The acquisition is expected to be completed in the fourth quarter.
The Evangeline pipeline will be operated by Boardwalk Louisiana Midstream, a subsidiary of Boardwalk.
Evangeline interconnects in Baton Rouge with the BLM ethylene distribution system that includes BLM’s storage facilities at the Choctaw Hub.
The pipeline is capable of transporting about 2.6 billion pounds of ethylene per year and is supported by long-term, fee-based contracts. Ethylene is used in shrink wrap and food packaging.
“Evangeline is a great strategic fit with BLM, which currently has one of the most extensive ethylene distribution systems in Louisiana,” said Kevin Miller, president of BLM. “The acquisition of Evangeline will further enhance our ability to provide reliable and flexible ethylene transportation and storage services to petrochemical customers in the growing Gulf Coast market.”
BLM provides transportation and storage services for ethylene and natural gas liquids , natural gas storage and brine supply services for producers and consumers of petrochemicals through two hubs in southern Louisiana. BLM plans to connect Evangeline to its storage facilities at BLM’s Sulphur Hub in the Lake Charles area after the acquisition is completed.