News & Media Releases

Shell announces sale of Gulf of Mexico natural gas pipelines

17/11/2004

HOUSTON Shell US Gas & Power LLC announced today that it has entered into a purchase and sale agreement with Enbridge Inc. for the sale of Shell Gas Transmission, which includes a majority of Shells Gulf of Mexico natural gas pipeline business, for $613 million. The sale is part of Shells ongoing program to grow its upstream business and focus on core downstream activities. Shells US Exploration & Production business will continue as a customer of Enbridge and will retain existing contracted long-term access to the pipelines.

Shell Gas Transmission owns or has an interest in 11 Gulf of Mexico natural gas pipelines in operation or under construction with a combined landed capacity of some 4.7 bcf/d.  The business has assets located across the Gulf of Mexico production areas. Shell’s exploration and production business will retain select gas gathering assets, which are viewed as integral to continued optimization of its existing developments and production.

Commenting on the sale, Shell Gas & Power’s Director for the Americas and Africa, Catherine Tanna said: “This sale is part of an on-going program of portfolio rationalization by Shell.  It enables us to focus on our core upstream activities in the Gulf of Mexico.”

Subject to normal regulatory approvals and customary closing conditions, the parties expect to complete the transaction by year-end 2004.