Shell sells GoM Shell Gas Transmission

Shell US Gas & Power LLC entered into an agreement with Enbridge Inc. for the sale of Shell Gas Transmission, which includes the majority of Shell's Gulf of Mexico natural gas pipeline business, for $613 million. The sale is part of Shell's program to grow its upstream business and focus on core downstream activities. Shell's US exploration and production business will continue as a customer of Enbridge and will retain existing contracted long-term access to the pipelines.

Shell Gas Transmission owns or has an interest in 11 GoM natural gas pipelines in operation or under construction with a combined landed capacity of 4.7 bcf/d. The business has assets across the GoM production areas. Shell's exploration and production business will retain select gas-gathering assets that the company views as integral to continued optimization of its existing developments and production.

Catherine Tanna, Shell Gas & Power's director for the Americas and Africa said: "This sale is part of an on-going program of portfolio rationalization by Shell. It enables us to focus on our core upstream activities in the Gulf of Mexico."

11/18/04