Two midstream majors said on July 25 that they would increase their equity interests in Tulsa, Okla.-based Explorer Pipeline Co.

Shell Midstream Partners LP (NYSE: SHLX) will purchase a 2.62% share of Explorer in a transaction that expands its refined products line. The interest will be divested by Shell Pipeline Co. LP, which retains a 35.97% interest in Explorer.

“This was an opportunistic acquisition for the partnership that aligns with our strategic intent to diversify our cash flows and bring forward accretive deals that complement our footprint,” John Hollowell, CEO of Shell Midstream Partners, said in a statement.

Phillips 66 Partners LP (NYSE: PSXP) also agreed to acquire an additional 2.5% equity interest in Explorer, increasing its total to about 22%. Phillips said in a statement that the acquisition is expected to be immediately accretive to unitholders and funded with cash and borrowings under its revolving credit facility.

Terms of the deal were not disclosed, but the company said it expected the transaction to close in August.

Explorer’s common carrier pipeline transports gasoline, diesel, fuel oil and jet fuel 1,830 miles from the Gulf Coast to the Midwest. It has a capacity of 660,000 barrels per day and serves more than 70 cities in 16 states through connections with other lines.

Explorer was created as a joint venture among eight oil companies and is now owned by subsidiaries of American Capital Strategies Ltd., Phillips 66, Marathon, Sunoco Logistics and Shell.

Joseph Markman can be reached at and @JHMarkman.