December 05, 2024 [Offshore Technology]- Edgewater Midstream, a portfolio company of EnCap Flatrock Midstream, has finalised the acquisition of the Sinco Pipeline system and the Colex East and Colex West Terminals from subsidiaries of Shell USA.
This acquisition enhances Edgewater’s logistics capabilities in the Houston refining corridor, a strategic area for refined products.
The Sinco Pipeline system comprises intrastate refined products pipelines connecting the Deer Park Refinery Complex to the Colex East and Colex West Terminals.
These pipelines also link various other refined products and crude oil terminals along the Houston Ship Channel.
The Colex Terminals boast storage capacity of approximately three million barrels of motor fuels.
The facilities provide strategic connections at the origin of the Colonial Pipeline, offering a direct conduit into the largest refined products pipeline in the US.
Additionally, they connect to the Explorer Pipeline, which delivers refined products from the US Gulf Coast to Midwest markets.
Edgewater aims to collaborate with key customers and shippers to address logistical constraints around the Houston Ship Channel.
Baker Botts acted as legal counsel to Edgewater on this transaction.
In related news, Nigeria’s oil regulator recently declined to approve Shell’s proposed $1.3bn (£1.03bn) sale of its onshore oilfields to the Renaissance group, citing the buyer’s lack of qualifications to manage the assets.
Shell’s exit from Nigeria’s onshore operations reflects a wider shift among major oil companies towards newer and more lucrative opportunities.
On the other hand, QatarEnergy recently signed a long-term agreement with Shell to supply liquefied natural gas (LNG) to China, starting in January 2025.
The deal will provide three million tonnes (mt) of LNG annually. This agreement underscores the growing demand for LNG in China, the world’s largest importer, with QatarEnergy and Shell working together to meet the country’s energy needs.
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