By OGJ editors
HOUSTON, June 28 -- Magellan Midstream Partners LP, Tulsa, June 24 signed a purchase and sale agreement with Shell Oil Co. unit Shell Oil Products US for the sale of more than 2,000 miles of refined product pipeline and storage assets—four systems total—in Texas, Oklahoma, Kansas, and Colorado for $492.4 million.
The major assets being acquired include the Orion, Hearne, Chase, and Cimarron pipeline systems. These systems, along with associated distribution terminal and storage assets, form an integrated system that transports refined products from refineries on the US Gulf Coast to West Texas and the Great Plains region.
In addition to the pipeline systems, the acquisition will include five active system terminals and seven transshipment storage facilities with a combined storage capacity of about 6.4 million bbl.
The transaction is expected to close in the third quarter.
"This acquisition complements our existing petroleum products pipeline system and our Galena Park and Dallas terminals extremely well," said Don Wellendorf, Magellan CEO
"The completion of a [PSA] with Magellan for these pipeline and terminal assets is another step in the journey towards improving our performance in support of reaching our financial and operational targets," said Lynn Elsenhans, CEO of Shell Oil Products.
