$800 Million Agreement in Acquiring Stakes by Shell

An agreement to acquire Shell’s 25.97% equity interest in Explorer Pipeline Company and 10.125% equity interest in Colonial Pipeline Company for US$800 million was made by Shell Midstream Partners, L.P. This agreement will increase Shell Midstream Partners’ interest in Explorer and Colonial to 38.59% and 16.125% respectively.

“This acquisition is evidence of our strategy in action – we will continue to build scale with diversified assets that provide robust, ratable cash flows,” said Kevin Nichols, CEO of Shell Midstream Partners. “The Explorer and Colonial systems have the capacity to deliver some three million bpd of refined products, providing energy to key demand centers of the United States.”

Explorer Pipeline’s 1830-mile pipeline transports gasoline, diesel, fuel oil and jet fuel with a capacity of 660,000 bpd and is recognized as one of the nation's leading petroleum products transporters serving more than 70 major cities in 16 states.

Colonial Pipeline’s 5,500-mile system moves gasoline, diesel and jet fuel from the Houston area to destinations in the South along the East Coast and New York Harbor and is the largest refined products pipeline in the United States.

The acquisition is expected to close in the second quarter of 2019.

Source:
worldpipelines