Shell Midstream Partners LP (SMP), Houston, has agreed to acquire additional equity interests in Zydeco Pipeline Co. LLC, Bengal Pipeline Co. LLC, and Colonial Pipeline Co. from Shell Pipeline Co. LP, a wholly owned subsidiary of Royal Dutch Shell PLC, for $700 million.
The acquisition will increase SMP’s interests in Zydeco to 92.5%, Bengal to 50%, and Colonial to 6%.
The acquisition will be effective Apr. 1 and is expected to close on May 23, SMP said.
SMP expects to fund the acquisition with a combination of proceeds from a capital markets transaction, borrowings under its revolving credit facilities, and cash on hand.