Shell Midstream Partners LP, Houston, has agreed to acquire Shell’s ownership interest in Amberjack Pipeline Company LLC, which is comprised of 75% of Amberjack Series A and 50% of Amberjack Series B for $1.22 billion (OGJ Online, Feb. 23, 2011).
The pipeline currently transports 300,000 b/d “due to the success of Jack St. Malo and Tahiti,” the company said, and is forecasted to transport approximately 400,000 b/d by the end of 2019 from continued in-field development, as well as new projects expected to come online.
The pipeline has “exceptional connectivity” in the Gulf of Mexico with delivery options along the Texas and Louisiana Gulf Coast, and shippers can deliver into multiple pipelines allowing for the transportation of four different crude grades, the company said.
Shell Midstream Partners plans to fund the acquisition with borrowings under existing credit facilities.
The acquisition is expected to close on or around May 11, subject to closing conditions.