Key facts
- Shell and Phillips 66 are exploring the sale of stakes in the Explorer refined products pipeline.
- The Explorer pipeline is a joint venture between Shell and Phillips 66.
- The pipeline transports refined petroleum products across several U.S. states.
- The potential sale could value the infrastructure at approximately $3.5 billion.
- The move reflects strong demand for energy infrastructure assets from financial buyers.
- The companies are working with financial advisers to explore options.
- The transaction process is in its early stages.
- No final decision has been made regarding the sale.
Shell and Phillips 66 are reportedly considering the sale of their stakes in the Explorer refined products pipeline. This joint venture, which transports refined petroleum products across several U.S. states, is estimated to be worth approximately $3.5 billion. The potential divestment signals a strong appetite from financial buyers for energy infrastructure assets, which are often seen as stable investments. Both Shell and Phillips 66 are said to be working with financial advisers to explore options and assess market interest for their stakes in the pipeline. The Explorer pipeline is a significant piece of midstream infrastructure, moving products like gasoline, diesel, and jet fuel from refining centers to various distribution points. The interest from financial buyers underscores a broader trend of private equity and infrastructure funds seeking to acquire such assets. These types of transactions often involve complex negotiations and valuations, given the long-term nature and operational importance of the infrastructure. The companies have not yet made a final decision regarding the sale, and the process is in its early stages. Further details regarding potential buyers or the specific structure of a deal have not been disclosed.