Williams, Boardwalk Formalize Key JV Deals Related to Proposed Bluegrass Pipeline and Related Fractionation

Williams

and Boardwalk Pipeline Partners, LP

today announced that they have executed a joint venture agreement to continue the development process for Bluegrass Pipeline, a project that would transport natural gas liquids from the Marcellus and Utica shale plays to the rapidly expanding petrochemical and export complex on the U.S. Gulf Coast, as well as the developing petrochemical market in the Northeast U.S. Phase one of the proposed pipeline would provide producers with 200,000 barrels per day of mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania. Phase two would increase capacity to 400,000 barrels per day to meet market demand, primarily by adding additional liquids pumping capacity. The pipeline would deliver mixed NGLs from these producing areas to proposed new fractionation and storage facilities, which would have connectivity to petrochemical facilities and product pipelines along the coasts of Louisiana and Texas. The proposed Bluegrass Pipeline would include constructing a new NGL pipeline from producing areas in Ohio, West Virginia and Pennsylvania to an interconnect with Boardwalk's Texas Gas Transmission, LLC system (Texas Gas) in Hardinsburg, Ky. From that point to Eunice, La., a portion of Texas Gas would be converted from natural gas service to NGL service. The joint venture would also include constructing a new large-scale fractionation plant and expanding natural gas liquids storage facilities in Louisiana and constructing a new pipeline connecting these facilities to the converted Texas Gas line in the Eunice, La. area. Williams and Boardwalk are also exploring development of a new export liquefied petroleum gas terminal and related facilities on the Gulf Coast to provide customers access to international markets. By combining new construction with an existing pipeline, Williams and Boardwalk believe that the Bluegrass Pipeline could be placed into service and begin serving customers sooner than other options. Williams and Boardwalk are engaged in comprehensive project development planning including project design, cost estimating, economic and risk analysis, customer contracting, permitting and other legal and regulatory approvals and right-of-way acquisition. Williams and Boardwalk expect that the planned project could be placed into service in late 2015 assuming all necessary conditions are met.