HOUSTON, May 3 (Reuters) – Shell Midstream Partners LP’s Zydeco pipeline volumes fell 11 percent in the first quarter after two shipper contracts expired and will remain volatile following a third expiration in the second quarter, CEO Kevin Nichols said on Friday.
The Houston-based affiliate of Royal Dutch Shell PLC expects a $5 million to $10 million impact to its second quarter net income because of the expiration of the third shipper contract on its Zydeco pipeline in Texas and Louisiana.
Two of the four take-or-pay shipper contracts on the Zydeco pipeline expired at the end of last year. Shell Midstream said it would run the line on more spot shipments, making crude volumes more volatile.
“Volumes will be volatile,” Nichols said in a conference