News & Media releases

Shell Completes Sale of Major Refined Products Pipeline Systems

01/10/2004

Asset Sales To Buckeye and Magellan Valued at $1 Billion Houston, TX - Shell Oil Products US announced today that it has completed the sale of the companys Mid-Continent refined products pipeline system to Magellan Midstream Partners, L.P., and the sale of the companys Midwest refined products pipeline system to Buckeye Partners, L.P. Shell has received proceeds from the two transactions totaling just over $1 billion.

The Mid-Continent refined products pipeline system, being acquired by Magellan Midstream Partners, L.P. for $ 490 million, is comprised of pipeline and storage assets located in Texas, Oklahoma, Kansas and Colorado.  Major assets in the system include the Orion Pipeline, Hearne Pipeline, Chase Pipeline, and Cimarron Pipeline.  These pipeline assets, along with associated distribution terminal and storage assets, form an integrated system that carries refined products from the U.S. Gulf Coast refineries to West Texas and the Great Plains region.  Major markets include Dallas, El Paso, and Denver. 

The Midwest refined products pipeline system, being acquired by Buckeye Partners, L.P. for $ 517 million, is comprised of pipeline and storage assets located in Illinois, Indiana, Ohio, Michigan and Wisconsin.  Major assets included in the sale consist of the East Line Pipeline, North Line Pipeline, St. Louis ATF Pipeline, St. Louis 6-inch Pipeline and the 2Rivers Pipeline.  These pipeline assets, along with 24 distribution terminal assets, form an integrated system that carries refined products from primarily U.S. mid-continent refineries to points throughout the Midwest region.  Major markets include Chicago, St. Louis, Cleveland, Indianapolis and Cincinnati.

“The sale of these assets represents one of several strategic decisions we have made to streamline our businesses.  The goal of our efforts is to further enhance our competitiveness, maximize the operational efficiency of the organization, and build upon our improving financial performance,” said Lynn Elsenhans, CEO of Shell Oil Products US.

Shell remains committed to marketing the Shell brand in West Texas, the Great Plains region, and the Midwest through the company’s retail and wholesale networks.  Contractual obligations to our customers will continue to be honored.