Shell unit to buy more interests in Explorer, Colonial lines

Shell Midstream Partners LP, Houston, has agreed to acquire Shell’s 25.97% equity interest in Explorer Pipeline Co. and 10.125% equity interest in Colonial Pipeline Co. for $800 million. The acquisition will increase Shell Midstream Partners’ interest in Explorer to 38.59% and in Colonial to 16.125%.

May 13th, 2019

Shell Midstream Partners LP, Houston, has agreed to acquire Shell’s 25.97% equity interest in Explorer Pipeline Co. and 10.125% equity interest in Colonial Pipeline Co. for $800 million. The acquisition will increase Shell Midstream Partners’ interest in Explorer to 38.59% and in Colonial to 16.125%.

Explorer’s 1,830-mile pipeline transports gasoline, diesel, fuel oil, and jet fuel with a capacity of 660,000 b/d.

The Colonial refined products pipeline—originating in Houston and terminating in New York harbor—supplies 50% of the refined products consumed on the East Coast, sourcing supply from 29 refineries and delivering to more than 260 terminals.

“The Explorer and Colonial systems have the capacity to deliver some 3 million b/d of refined products, providing energy to key demand centers of the US,” said Kevin Nichols, chief executive officer of Shell Midstream.

The acquisition, anticipated to be funded with 75% debt and 25% equity, is expected to close in this year’s second quarter subject to customary closing conditions.

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