Colonial Pipeline Company has purchased Shell Pipeline Company’s interest in the Port Arthur Products Station and Shell Ex Facility, known as PAPS, in Texas.
Shell will provide interim operating services while the parties work toward a safe and timely transition of operatorship of the terminal to Colonial.
The terminal, which today provides a gateway to the Colonial and Explorer pipelines for local refiners Total and Valero, adds 3.2 million barrels of tankage to Colonial’s system, and offers the potential for Colonial to provide new services for refiners and shippers within the Texas Refining Complex.
In addition to the facility’s current use, Colonial is evaluating business opportunities it believes will appeal to customers. Downstream sections of Colonial’s pipeline where capacity is currently constrained are not expected to be affected.
