Shell Midstream Partners has spent $825m on the acquisition of five products terminals, a partial interest in two Gulf of Mexico corridor pipelines and two strategic onshore pipelines.
Shell Midstream Partners funded the acquisition with borrowings under new and existing credit facilities.
Highlights of the assets to be acquired are:
- A 100% interest in Triton West LLC which owns the Anacortes, Colex, Des Plaines, Portland, and Seattle products terminals. The terminals are strategically located with take-or-pay contracts with wholly owned subsidiaries of Shell. Each contract has an initial term of 10 years with options to extend up to 20 years. The acquisition of the products terminals builds upon Shell Midstream Partners’ strategy to access assets across Shell’s broad asset base.
- A 22.9% interest in Mars Oil Pipeline Company LLC (Mars) and a
22% interest in Odyssey Pipeline LLC (Odyssey). Both Mars and Odyssey serve high growth areas of the Gulf of Mexico. Following the closing of the transaction, Shell Midstream Partners will own 71.5% of Mars and 71% of Odyssey.
- A 10% interest in Explorer Pipeline Company (Explorer) and a 41.48% interest in LOCAP LLC (LOCAP). Explorer owns a 1,830-mile products pipeline extending from Gulf Coast refineries to the upper Midwest. LOCAP owns a 55-mile common carrier crude pipeline from the LOOP Clovelly Salt Dome facility to the active trading hub of St. James, Louisiana.
For more information visit www.shellmidstreampartners.com
Image depicts alternative Shell assets
3rd Jan 2018