Shell Midstream increases its GoM pipeline capacity

The Auger pipeline system is a 174-mi (282-km) offshore corridor pipeline that transports crude from the Central Gulf of Mexico
The Auger pipeline system is a 174-mi (282-km) offshore corridor pipeline that transports crude from the Central Gulf of Mexico. (Courtesy Shell Midstream Partners)

Offshore staff

HOUSTON – Shell Midstream Partners, L.P., says it has agreed to acquire from Shell an additional 20% equity interest in Mars Oil Pipeline Co. (Mars) and a 49% equity interest in Odyssey Pipeline L.L.C. (Odyssey) for $350 million. 

“This acquisition further diversifies the Shell Midstream Partners portfolio with the inclusion of a well-positioned eastern Gulf of Mexico asset,” said John Hollowell, CEO of Shell Midstream Partners. “In addition, the partnership acquired an additional interest in an existing asset with a strong track record of delivery. Both Mars and Odyssey build on our key corridor pipeline strategy in the Gulf of Mexico and are advantageously positioned to continue to capture growth of offshore volumes along our footprint of assets.”

Mars and Odyssey highlights include:

  • Mars delivers crude from the prolific Mars basin and the Amberjack system, offering 600,000 b/d of capacity into LOOP’s Clovelly facility
  • Odyssey has 220,000 b/d of capacity from the eastern Gulf of Mexico to the Delta pipeline system, enabling deliveries to refineries in Louisiana and Mississippi.

The acquisition is expected to close on Oct. 3, 2016.


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