In a deal set to close in the fourth quarter, US oil and petrochemicals producer Chevron plans to sell its Evangeline ethylene pipeline system in Texas to Houston-based Boardwalk Pipeline Partners for $295 million in cash.

The 176-mile interstate Evangeline system running from Port Neches, Texas to Baton Rouge, Louisiana is a "great strategic fit" with the Houston company's subsidiary Boardwalk Louisiana Midstream, BLM, which currently has one of the most extensive ethylene distribution systems in Louisiana, said BLM President Kevin Miller.

The Evangeline system capable of transporting 2.6 billion lbs of ethylene per year interconnects with the BLM ethylene distribution system that includes storage facilities at its Choctaw Hub. BLM plans to connect Evangeline to its Sulphur Hub storage facilities in the Lake Charles, Louisiana area after the acquisition is completed.