- Shell Midstream Partners (NYSE:SHLX) says Q1 offshore oil pipeline volumes rose by 11% from the previous quarter, but onshore flows continued to struggle from lower demand caused by the pandemic.
- Volumes on the Mars crude oil pipeline system off the Louisiana coast, which includes its 400K bbl/day main line, jumped 13% Q/Q to 498K bbl/day from 441K in Q4 2020, Shell Midstream said on today's earnings conference call.
- Shell Midstream and its partners have started acquiring materials to expand the Mars system by ~65K bbl/day and expect the project to be operational next year, CEO Steven Ledbetter said on the call.
- Onshore, the company's pipelines continued to see below normal demand largely due to a decrease in fuel consumption caused by the pandemic.
- Volumes on the Zydeco pipeline system, with a 350-mile main pipeline that delivers crude to St. James and Clovelly in Louisiana from terminals in Texas, fell 5.5% to 659K bbl/day from 697K in Q4 2020.
- "We remain optimistic and expect that when demand improves across the U.S., our system throughput will recover as well," Ledbetter said.
- Shell Midstream Partners fell 4.4% in today's trading despite reporting better than expected Q1 earnings and revenues.
Shell Midstream says offshore pipeline flows rise but onshore struggles
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