Boardwalk Signs Deals for Extra Capacity

Boardwalk Pipeline Partners announced that its subsidiary, Gulf South Pipeline, has signed long-term binding precedent agreements with customers for additional capacity on its previously announced East Texas and Mississippi expansion projects.

The contracts support increasing the capacity of the expansion projects announced on March 1, 2006, from 1.0 Bcf/day to 1.5 Bcf/day. The total cost of the expanded projects is expected to be approximately $800 million, an increase of $225 million from the amount previously announced. The new capacity is expected to be in service during the second half of 2007.

As previously announced, the East Texas Expansion capacity will extend from Carthage in East Texas to the Perryville area in Richland Parish, Louisiana. The natural gas being transported on these expansion projects originates primarily from the prolific Barnett Shale and Bossier Sands producing regions of East Texas. This gas will be transported to interstate pipelines serving markets in the Midwest and Northeast.

"These additional commitments for capacity on our pipeline expansion demonstrate the tremendous demand and support for these projects," said Rolf Gafvert, Co-President of Boardwalk. "We intend to continue to work with our customers on follow-on projects to further extend our system to the Southeast markets."

These projects are subject to Federal Energy Regulatory Commission approvals.