Shell Plans Sale of Nat Gas Pipeline Unit in Gulf of Mexico

Shell US Gas & Power LLC announced the proposed sale of its Gulf of Mexico natural gas pipeline business unit, Shell Gas Transmission, LLC. The sale is being pursued as part of the Royal Dutch/Shell Group's ongoing program of portfolio rationalization.

"Shell Gas Transmission's extensive natural gas pipeline network is well positioned in all producing corridors in the Gulf of Mexico," said Gus Noojin, President and CEO of Shell US Gas & Power LLC. "However, as part of ongoing portfolio review, it was determined that Shell's Gulf of Mexico business objectives do not require all gas infrastructure to be owned and operated by Shell."

Shell Gas Transmission owns or has an interest in 17 Gulf of Mexico natural gas pipelines in operation or under construction. These pipelines have a total capacity of almost 9 billion cubic feet per day. Certain Shell Gas Transmission pipelines serving Shell production facilities will not be included in the sale.

Assets to be sold are located in the western, central and eastern segments of the Gulf of Mexico production area. An information memorandum for prospective buyers will be issued in May, and the sale of the assets is expected to be completed by year-end 2004.