A Boardwalk Pipeline Partners LP (BPP) subsidiary has paid approximately $285 million to Boardwalk Pipelines Holding Corp. (BPHC) for the remaining 80% equity interest in Boardwalk HP Storage Co., the Houston-based partnership said Monday.

BPHC, which is a subsidiary of Loews Corp. and the parent of BPP’s general partner, acquired the interest for the same price at the end of 2011 (see Daily GPI, Oct. 18, 2011).

“Acquiring the remaining ownership interest in Boardwalk HP Storage was one of our key goals for 2012,” said Boardwalk CEO Stan Horton. “Boardwalk has been operating these assets since they were acquired in December 2011 and the transition has gone extremely well.”

Boardwalk HP Storage operates seven high deliverability salt dome natural gas storage caverns with 29 Bcf of total capacity, of which approximately 19 Bcf is working gas capacity in Forrest County, MS. The company also owns undeveloped land suitable for up to six additional storage caverns, one of which is expected to be placed in service in 2013 at an incremental cost of approximately $35 million.

The latest transaction has been approved by the independent conflicts committee of Boardwalk’s board of directors. With the closing of the deal, BPP owns storage fields with total working gas capacity of about 186 Bcf and 14,300 miles of pipeline.

In October BPP and a joint venture it formed with an affiliate of its general partner agreed to pay a total of $550 million in cash to acquire Petal Gas Storage LLC and Hattiesburg Gas Storage Co. from Enterprise Products Partners LP. The deal included 69,0000 hp of compression, 105 miles of pipeline connecting to several major natural gas pipelines — including Boardwalk’s Gulf South Pipeline — and associated facilities. Storage capacity is fully subscribed under long-term fixed-fee contracts with a weighted-average remaining contract life of approximately seven years, according to Boardwalk.

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