Boardwalk CEO talks up two Permian-to-Gulf Coast nat gas pipelines

Boardwalk Pipeline Partners (NYSE:BWP) says it continues to pursue plans to transport Permian Basin natural gas to the Gulf Coast via a second pipeline but has not yet made a final investment decision.

During its earnings conference call yesterday, CEO Stanley Horton said BWP is “progressing in discussions” with potential shippers for its proposed Permian-to-Katy pipeline, a joint venture with Sempra Energy (NYSE:SRE).

The 1.9B cf/day Gulf Coast Express natural gas transportation project, a joint venture of Kinder Morgan, DCP Midstream and Targa Resources, recently was given the go-ahead, but Horton says BWP continues to "believe there will be demand for at least two natural gas pipelines from the Permian to the Texas Gulf Coast area... Based on our conversations with producers and end-use customers, we remain optimistic about the project."

On move forward with the P2K project, Horton said pipeline capacity “could be from 1.7B cf/d all the way up to 2.2B cf/d, and you’d like to see firm commitments on that for the majority of the capacity before you would authorize the FID.”

Nguồn: seekingalpha.com