Boardwalk says Bluegrass project not dead even after investment halt

|About: Boardwalk Pipeline Partners... (BWP)|By:, SA News Editor

Boardwalk Pipeline Partners (BWP) says its Bluegrass pipeline project to ship natural gas liquids from the Marcellus and Utica shale areas to the Gulf coast isn't dead, even after Williams Cos. (WMB) said it would suspend investment in the project.

Bluegrass’ demise would remove the financing, regulatory and execution risks of the project, and may lead investors to "question the security" of other WMB, according to Jefferies analyst Chris Sighinolfi, who notes WMB had included the pipeline in its projections while BWP hadn’t.

BWP today reported Q1 earnings that included a $10M impairment cost related to the project.