Shell Midstream Partners, L.P. agreed to buy a 100% interest in the Refinery Gas Pipelines, Delta Pipeline and Na Kika Pipeline for $630 million from wholly owned units of Shell.

The acquisition price reflects an approximate 8.4-times multiple of the assets' forecasted next 12 months adjusted earnings before interest, taxes, depreciation, and amortization.

Highlights of the acquired assets:

Refinery Gas Pipelines: A network of approximately 100 miles of gas pipeline connecting multiple refineries and plants operated along the Gulf of Mexico Coast to Shell Chemical sites, including Shell's Norco refinery and Deer Park, Texas, refinery. The pipelines transport a mix of methane, natural gas liquids and olefins. This is the first drop down of assets from outside of Shell Pipeline Co.

Delta Pipeline: An approximately 130-mile-long onshore pipeline aggregating volumes from five offshore pipelines including Shell Midstream Partners' Odyssey Pipeline and the Na Kika Pipeline. This acquisition connects offshore oil production in the eastern corridor of the Gulf of Mexico to onshore markets.

Na Kika Pipeline: An approximately 80-mile-long offshore pipeline anchored by the Na Kika platform, which hosts eight different subsea fields and connects to the Delta Pipeline at Main Pass 69.

Shell Midstream Partners is based in Houston, Texas, and is a fee-based, growth-oriented midstream master limited partnership formed by Royal Dutch Shell to own, operate, develop, and acquire pipelines and other midstream assets.