$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.


Bueckeye's Pipeline Repair Facing Storm Delays After River Spill

Buckeye Partners LP said on Monday that they plan on beginning full repair work this week on the jet fuel pipeline that breached and spilled 8,000 gallons of fuel into Indiana’s St. Marys River over the weekend.

Although clean-up efforts are already underway, replacing the broken line will need to be delayed because of rain storms that have raised the river’s level near Decatur, Indiana, said Buckeye spokesman Marty White.

“We’re dealing with the elements,” White said. “We’re hoping to get the pipeline back up and running this week, but it’s too soon to tell.”

The company does not yet have an estimate of clean-up costs and is unclear on when clean-up will finish or when the pipeline will be brought back online, White said.

The pipeline is buried beneath the channel and it would be impossible to fully repair it before water levels recede to normal levels, White said.


8,000 Gallons of Jet Fuel Spills into Indiana River After Buckeye Pipeline Accident

More than 8,000 gallons of jet fuel spilled from a Buckeye pipeline into an Indiana river, The Associated Press reported Sunday.

The river was St. Marys River in Decatur, a small town about 100 miles from Indianapolis.

The spill was first reported Friday night in a safety warning issued by the Decatur Police Department. They urged residents to avoid the area around the spill as it could take multiple weeks to clean.

Houston-based Buckeye Pipe Line Company confirmed the spill to WANE Saturday. Officials said that a failure Friday evening caused the spill.

"One of their workers discovered a pressure drop, went immediately to check on it and immediately shut it down," Allen County Homeland Security Director Bernie Beier told The Journal Gazette.

The pipeline will be shut off until repairs are complete. Buckeye’s Emergency Resposne Team will also need to control the spill and clear the area, WANE reported. The company is investigating the cause of the failure.

Beier told The Journal Gazette that booms were used to contain the spread of the fuel, which was being vacuumed off the top of the river.

"So the goal is to get as much of the product or the fuel off the top of the river before the rains get heavier, the waters rise and the currents get faster," Beier explained. "When the water becomes more turbulent, anything off the top tends to get sucked down with logs, sticks and debris. And they're really making great progress, they're getting a lot of fuel off the water," Beier said.

The U.S. Environmental Protection Agency (EPA) is also monitoring air quality around the spill site and the water quality downstream, The Associated Press reported.

Police warned Decatur residents not to smoke or light flames near the river, WANE reported.


Arkansas Officials Celebrate Magellan Pipeline Opening

Arkansas officials on Wednesday celebrated the opening of a new pipeline that will transport gasoline, diesel, and jet fuel into the state, increasing energy in the state and helping with economic development.

The $200 million, 210-mile Magellan Midstream Partners pipeline system runs from Fort Smith to Little Rock, Arkansas and has a capacity of 75,000 barrels a day. It is connected to refineries in Oklahoma, Kansas, and the Gulf Coast.

According to Magellan’s President and CEO Michael Mears, the pipeline system has several safety features to prevent spills, such as the use of devices and real-time monitoring to watch for any corrosion, leaks, or other defects.

"Obviously, safety is of paramount importance to the pipeline industry," Mears said at the opening event of the pipeline. "The new construction on this pipeline met all the standards obviously, but we take it to the next level."

Houston Chronicle