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Shell urges denial of proposed Magellan oil trading arm

Published 03/15/2018, 01:10 PM
© Reuters.  Shell urges denial of proposed Magellan oil trading arm
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  • The U.S. trading arm of Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B) urges regulators to stick to their ruling denying Magellan Midstream Partners (NYSE:MMP) permission to form a marketing affiliate, saying the move would undercut other oil shippers.
  • Shell U.S. Trading Co. says it is concerned about “the negative impact to the market when affiliated marketing and pipeline companies act in a coordinated fashion,” which would give pipeline companies ways to get around federally-set rates.
  • The Federal Energy Regulatory Commission in November denied MMP's proposal to create a marketing affiliate to buy, sell and ship crude oil; MMP in December requested a rehearing in a filing that rivals have criticized.
  • Now read: Magellan Midstream Partners - Increasing Distribution Even During Recessions


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