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Boardwalk Pipeline Partners Announces Open Season for 700,000 Mcf Per Day Pipeline Expansion to Florida and the Southeast

Posted on: Tuesday, 25 April 2006, 18:00 CDT

Boardwalk Pipeline Partners, LP (NYSE: BWP) announced today that its subsidiary, Gulf South Pipeline Company, LP, is conducting a binding open season for firm transportation capacity on its Southeast Expansion pipeline project. The expansion will initially have 700,000 Mcf per day of capacity, and it will transport gas from the Jackson, Mississippi area to Florida markets and various other interconnects with interstate pipelines and storage facilities serving markets in the Southeast and Northeast.

As part of this project, Boardwalk has negotiated an agreement with Destin Pipeline Company, L.L.C. to lease capacity on Destin's system as an integral part of its Southeast Expansion Project. The project would include a new 89 mile, 36 inch pipeline originating near Jackson, Mississippi and interconnecting with Destin Pipeline in Clarke County, Mississippi. From there, gas would be transported using Gulf South's leased capacity on Destin to Florida markets through interconnects with Florida Gas Transmission and Gulfstream pipelines. In addition, this project would provide additional supplies to customers in the Northeast and other Southeast markets, through interconnects with Tennessee Gas Pipeline, Transcontinental Pipeline, and Southern Natural. During the open season, Gulf South is also soliciting customer interest in constructing a 36 mile lateral from the Gulf South and Destin interconnect eastward to Transco's system near Station 85, located in Choctaw County, Alabama.

Natural gas originating primarily from the prolific Barnett Shale and Bossier Sands producing regions of East Texas will be transported to the Jackson, Mississippi area on Gulf South's previously announced East Texas and Mississippi Expansion projects. The Southeast Expansion Project would facilitate movement of that gas further east into the interstate pipeline grid. This project would also provide Florida markets access to reliable on-shore gas supplies. The Southeast Expansion capacity is expected to be in-service during the first half of 2008.

"Gulf South continues to receive strong market support for its expansion projects," said Rolf Gafvert, Co-President of Boardwalk. "A positive market response during this open season would allow us to construct new capacity to serve customers in Southeast markets such as Florida as well as giving shippers additional access to interstate pipelines serving customers in the Northeast and South Eastern parts of the United States. This expansion further reinforces the strong presence of Boardwalk Pipeline Partners as we continue to meet the needs of producers and end users in the marketplace."

The expansion project and lease are subject to Federal Energy Regulatory Commission (FERC) approvals. Gulf South anticipates commencing the certificate process with the FERC after the close of a successful open season.

Boardwalk Pipeline Partners, LP is a master limited partnership engaged through its subsidiaries, Texas Gas Transmission, LLC and Gulf South Pipeline Company, LP, in the interstate transportation and storage of natural gas. Boardwalk's two interstate natural gas pipeline systems have approximately 13,470 miles of pipeline and underground storage fields with aggregate working gas capacity of approximately 143 Bcf.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws relating to expectations, plans or prospects for Boardwalk and its subsidiaries, including those relating to whether or not Gulf South will successfully complete the Southeast expansion, lease capacity on Destin, the capacity, cost and timing of any completed projects and the future financial performance of those assets. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the company's control and the risk factors and other cautionary statements discussed in Boardwalk's filings with the U.S. Securities and Exchange Commission.

Source: Business Wire

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