Chevron Boosts Interest in Natural Gas Pipeline System & Storage Facility

In support of the company's plans to grow its natural gas business, Chevron announced an increase in its equity ownership in Bridgeline Holdings, L.P. (BLH) to 100 percent. Financial details were not disclosed.

Chevron acquired the 40 percent interest in the BLH limited partnership held by an affiliate of Targa Resources, Inc. (Targa). BLH was formed in 2000 between Chevron (60%) and Targa's predecessor (40%), with Targa acquiring its ownership in BLH in late 2004. After formation of the limited partnership Chevron acted as the operator of the BLH assets under an operator services agreement.

In southern Louisiana along the Mississippi River corridor, BLH manages and operates an integrated intrastate natural gas pipeline and storage system, consisting of more than 1,000 miles of pipeline and 12 billion cubic feet of natural gas storage capacity, and manages marketing, supply and transportation functions.

Chevron Pipe Line President Tom Winterton said, "Securing full ownership in this strategically located natural gas infrastructure is consistent with the company's ongoing efforts to grow its global gas business. Pipelines provide an essential final link in enabling the distribution of natural gas to customers. With demand for clean, abundant natural gas expected to outpace oil over the next two decades we are pleased to be investing in infrastructure for the future."