Shell Midstream Partners acquires additional Shell assets
Shell Midstream Partners has entered into a US$825 million purchase and sale agreement to acquire a 100 per cent interest in five products terminals and a partial interest in two Gulf of Mexico corridor pipelines and two strategic onshore pipelines.
The acquisition includes a 100 per cent interest in Triton West LLC, which owns products terminals in Anacortes, Colex, Des Plaines, Portland, and Seattle, with an initial term of 10 years, with options to extend up to 20 years.
The two Gulf of Mexico corridor pipelines serve high growth areas; Shell Midstream Partners’ acquisition comprises a 22.9 per cent interest in Mars Oil Pipeline Company, bringing its ownership to 71.5 per cent, and a 22 per cent interest in Odyssey Pipeline, bringing its ownership to 71 per cent.
Onshore pipeline acquisitions include a 10 per cent interest in Explorer Pipeline Company, which owns a 2,945 km product pipeline from the Gulf Coast refineries to the upper Midwest, and a 41.5 per cent interest in LOCAP LLC, which owns an 89 km common carrier crude pipeline from the LOOP Clovelly Salt Dome facility to the active trading hub of St James in Louisiana.
Shell Midstream Partners intends to fund the acquisition with borrowings under new and existing credit facilities.
The terms of the acquisition were approved by the conflicts committee of the Board of Directors of the General Partner of Shell Midstream Partners, which is comprised entirely of independent directors.
The acquisition is expected to close on or around 1 December 2017, subject to customary closing conditions.
For more information visit the Shell Midstream Partners website.
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