andPhillips 66 Partners LPagreed to acquire equity interests in ExplorerPipeline Co.
Shell Midstreamwould acquire a 2.62% equity interest in Explorer, while Phillips 66 Partnersis boosting its ownership interest in the company with a 2.5% interest,resulting in a total stake of about 22%, according to July 25 news releasesfrom both partnerships.
Theacquisition would add a new refined products line to Shell Midstream'sportfolio. Explorer's 1,830-mile pipeline transports gasoline, diesel, fuel oiland jet fuel at an average of more than 600,000 barrels per day and serves morethan 70 major cities in 16 states. Explorer is also adding 18 miles of new pipefor diluent transportation in Illinois.
Thetransaction was carried out by Shell Midstream in connection with 'sshareholder right to buy part of an equity interest divested by anotherExplorer shareholder. Shell Pipeline separately owns a 35.97% stake inExplorer, Shell Midstream said in its release.
ShellMidstream would fund the transaction with available cash, while Phillips 66 Partnerssaid it will use cash and borrowings under its revolving credit facility. Bothtransactions are scheduled to close in August.