- Boardwalk Pipeline (BWP +1.2%) files with the FERC seeking approval to restructure some of its existing firm transportation agreements and enter into new firm transportation agreements with Sourthwestern Energy (SWN +1.8%).
- BWP says the agreement lowers the contract quantities for SWN's existing firm transportation contracts on the Fayetteville Lateral through 2020 and adds new long-term firm transportation agreements on the Fayetteville and Greenville Laterals through 2030.
- BWP says the restructuring of the transportation agreements will help Texas Gas achieve greater long-term revenue generation and provides future revenue upside through SWN's volume commitment of flowing gas from the Fayetteville and Moorefield plays.
- SWN expects the new agreement, effective Nov. 1, will provide ~$70M in savings during 2017-20 through the reduction of current excess capacity while guaranteeing future flexible takeaway capacity through 2030 at competitive rates.
- Now read: U.S. Natural Gas: Macro Analysis And Who Benefits
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