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Sasol signs long-term ethane storage agreement

05.01.2014  | 

Project includes expanding natural gas liquids storage capacity in Louisiana

Keywords: [ethane] [ethylene] [NGLs] [pipeline] [storage] [petrochemicals ]

Boardwalk Pipeline Partners, LP announced today that its operating subsidiary, Boardwalk Louisiana Midstream LLC (BLM), and Sasol Chemicals (USA) LLC have signed long-term ethane and ethylene storage and transportation Agreements. BLM will provide those services to support the operations of Sasol’s proposed large-scale ethane cracker and derivatives complex near Westlake, Louisiana. The agreement is contingent on the project receiving a final investment decision by Sasol.

The agreement would allow BLM to expand natural gas liquids (NGLs) storage and transportation assets at its Sulphur Hub in the Lake Charles, Louisiana area. The project would include BLM drilling and developing two new storage wells, one each for ethane and ethylene, and constructing new pipeline facilities and an interconnection with a third-party pipeline. The new storage wells would more than triple the current storage capacity at BLM’s Sulphur Hub. It would also create opportunities for additional storage and transportation services for other petrochemical and refining customers in the Lake Charles Area.

“We are pleased to have the opportunity to serve Sasol’s proposed large-scale ethane cracker and other facilities in the Lake Charles area. This project demonstrates that we are executing our strategy to expand our presence as a critical service provider to the petrochemical industry. In addition, this project is an example of the growth potential Boardwalk anticipated when it acquired the BLM assets in October 2012. We look forward to Sasol’s final investment decision on the project,” said Kevin Miller, president of BLM.

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