Boardwalk Pipeline JV buys PL Midstream for $625M

HOUSTON -- Boardwalk Pipeline Partners LP said Monday that Boardwalk Acquisition Co., a joint venture with an affiliate of its general partner, completed its acquisition of PL Midstream LLC from PL Logistics LLC for about $625 million.

The Houston-based natural gas distributor said that PL Midstream is rapidly growing and has strategically located assets with attractive long-term contracts.

The company provides storage, pipeline transportation and supply services for producers and consumers of petrochemicals, natural gas liquids and natural gas through two hubs in southern Louisiana. The assets represent about 53.5 million barrels of salt-dome storage capacity and more than 240 miles of pipeline transportation assets, Boardwalk said.

Boardwalk funded the acquisition with proceeds from a $225 million, five-year bank loan and equity contributions from itself and an affiliate of its general partner.

Boardwalk shares rose 8 cents to $27.98 in afternoon trading.