Shell Midstream Partners, L.P. has entered into a purchase and sale agreement to acquire a 100% interest in the Refinery Gas pipelines, Delta pipeline and Na Kika pipeline for US$630 million from Shell subsidiaries.
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"Shell Midstream Partners acquire additional Shell assets"
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Shell Midstream Partners intends to fund the acquisition with a combination of borrowings under existing credit facilities and cash on hand. The acquisition is expected to close on or around 10 May, subject to customary closing conditions.
Highlights of the acquired assets include:
- Refinery Gas pipelines: A network of approximately 100 miles of gas pipeline connecting multiple refineries and plants operated along the Gulf Coast to Shell Chemical sites, including Shell's Norco refinery and Deer Park refinery. The pipelines transport a mix of methane, natural gas liquids and olefins.
- Delta pipeline: An approximate 130 mile onshore pipeline aggregating volumes from five offshore pipelines including Shell Midstream Partners' Odyssey pipeline and the Na Kika pipeline. This acquisition connects offshore oil production in the eastern corridor of the Gulf of Mexico to key onshore markets.
- Na Kika pipeline: An approximate 80 mile offshore pipeline anchored by the Na Kika platform which serves as a host to eight different subsea fields and connects to the Delta pipeline at Main Pass 69.
The terms of the acquisition were approved by the conflicts committee of the board of directors of the general partner of Shell Midstream Partners, which is comprised entirely of independent directors. This committee was advised by Evercore Group, L.L.C. as to financial matters and Andrews Kurth Kenyon LLP as to legal matters.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/09052017/shell-midstream-partners-acquire-additional-shell-assets/