News | August 29, 2024

Shell To Sell Sinco Pipeline System And Colex Terminal To Edgewater Midstream

Shell Pipeline Company LP and Triton West LLC, respective subsidiaries of Shell USA, Inc. (Shell), have agreed to sell their 100% interest in the Sinco pipeline system and Colex terminal to a subsidiary of Edgewater Midstream LLC (Edgewater), pending regulatory approval.

“This sale follows our guidance at Shell´s Capital Markets Day to continue to simplify our portfolio as we seek to deliver more value, with less emissions,” said Andrew Smith, Shell Executive Vice President Trading & Supply. “After the completion of the sale of Shell’s equity in Deer Park Refinery, these assets are non-integrated and no longer fit within Shell´s Powering Progress strategy. This transaction enables re-deployment of capital to other projects that will do so.”

The sale of both assets is expected to be completed in Q4 2024.

Notes to editors

  • The Sinco pipeline system and the Colex terminal are located in the Houston Ship Channel area and have historically been operated as integrated assets with the Deer Park Refinery.
  • In 2022, Shell completed the sale of its equity share in the Deer Park Refinery to Pemex, rendering the Sinco pipeline and the Colex terminal non-strategic and non-integrated.
  • Both Shell Pipeline Company LP and Triton West LLC are subsidiaries of Shell and own 100% of Sinco pipeline system and Colex terminal, respectively.
  • Edgewater focuses on the acquisition, development and operation of pipelines and terminals in proximity to major North American petroleum trading hubs and demand centers, primarily in coastal markets.
  • Shell Pipeline Company LP transports over 1.5 billion barrels of oil annually through its vast network of pipelines and tank farms, ensuring reliable delivery of essential products like crude oil, gasoline, and chemicals.
  • The U.S. is a key market for Shell, where it has interests in 50 states and employs more than 13,000 people who work to provide a secure supply of energy today, while tackling the energy challenges of the future. Shell’s U.S. portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, lubricants, and refined fuel products along with renewables such as wind, solar, and mobility segments like electric vehicle charging.

Shell’s net carbon intensity
Also, in this announcement we may refer to Shell’s “Net Carbon Intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “Net Carbon Intensity” or NCI are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s Net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Source: Shell