Major assets included in the sale consist of the Orion Pipeline, Hearne Pipeline, Chase Pipeline, and Cimarron Pipeline. These pipeline assets, along with associated distribution terminal and storage assets, form an integrated system that carries refined products from the U.S. Gulf Coast refineries to West Texas and the Great Plains region. Major markets include Dallas, El Paso, Oklahoma City and Denver.
The transaction is expected to close in the third quarter of 2004 after completion of due diligence and appropriate regulatory review.
"The completion of a Purchase and Sale Agreement with Magellan for these pipeline and terminal assets is another step in the journey towards improving our performance in support of reaching our financial and operational targets," said Lynn Elsenhans, CEO of Shell Oil Products US.
Shell remains committed to marketing the Shell brand in West Texas and the Great Plains region through the company's retail and wholesale networks. Contractual obligations to our customers will continue to be honored.
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