Upon completion of the transaction on 18 May, Shell Midstream’s stake in Zydeco will increase from 43% to 62.5% and in Colonial from 1.612% to 3%.
Shell Midstream Partners CEO Peggy Montana said: "Shell Midstream Partners is committed to delivering top tier distribution growth to unitholders.
"Our initial asset base generates stable and predictable cash flow from long-term fee based contracts.
"The additional interest in these two key assets will continue to build our cash flow base to help us deliver strong distribution growth."
Shell Midstream anticipates the acquisition to be immediately accretive to the distributable cash flow per unit.
Shell Midstream Partners is a midstream master limited partnership which owns, operates, develops and acquires pipelines and other midstream assets.
