OREANDA-NEWS. Demand for additional US pipeline capacity is slowing alongside declines in gas drilling, said Boardwalk Pipeline Partners chief executive Stan Horton.

"Demand for incremental capacity has slowed down with the decline in drilling," Horton told analysts on today's earnings call. Boardwalk plans to weather the downturn and sell remaining pipeline capacity "when the time is right," he added.

Boardwalk saw net income of $65.6mn for the fourth quarter of 2015 compared with $36.9mn for the fourth quarter of 2014, as the Evangeline ethylene line and other new lines were in service last quarter. The results were also favorably impacted by additional revenue from interim rates on the Gulf South natural gas line implemented in November.

Boardwalk executive said the partnership is moving forward with its previously announced $1.6bn in growth projects and general maintenance, including a 626,000mn Btu/d Ohio-to-Louisiana gas pipeline scheduled for completion in the second quarter of 2016 and gas projects in Indiana and Kentucky scheduled for the third quarter of 2016. Boardwalk reaffirmed construction of an ethylene pipeline to service the new Sasol ethane cracker is still scheduled for completion in the second half of 2017.

Boardwalk expects to spend $850mn in capital spending and maintenance in 2016, up sharply from the $375mn spent in 2015.