US Shell Midstream agrees to $825m deal for additional Shell assets

Source: ICIS News


HOUSTON (ICIS)--Shell Midstream Partners has agreed to a $825m deal to acquire additional terminal and pipeline assets from Shell, the US-based master limited partnership (MLP) of the Anglo-Dutch energy and chemicals major said in a filing.

Under the deal, Shell Midstream will acquire:

- A 100% interest in Triton West LLC, which owns the Anacortes, Colex, Des Plaines, Portland and Seattle products terminals. The terminals have take-or-pay contracts with wholly owned subsidiaries of Shell.

- A 22.9% interest in Mars Oil Pipeline Co LLC and a 22% interest in Odyssey Pipeline LLC, both in the Gulf of Mexico. Following completion, Shell Midstream will own 71.5% of Mars and 71% of Odyssey.

- A 10% interest in Explorer Pipeline Co and a 41.48% interest in LOCAP LLC. Explorer owns a 1,830-mile (approximately 3,000km) products pipeline extending from Gulf Coast refineries to the upper Midwest, and LOCAP owns a 55-mile common carrier crude pipeline from the LOOP Clovelly Salt Dome facility to the trading hub of St James, Louisiana.

The terms of the acquisition have already been approved by the conflicts committee of the board of directors of the general partner of Shell Midstream Partners.