Shell Finalizes Sale of Colonial Pipeline Stake to Brookfield Subsidiary

Shell has sold its 16.125% stake in Colonial Enterprises, parent of Colonial Pipeline, to Brookfield Infrastructure for $1.45 billion.

(P&GJ) — Shell Midstream Operating LLC, a subsidiary of Shell plc, has completed the sale of its 16.125% interest in Colonial Enterprises Inc. to Colossus AcquireCo LLC, a wholly owned subsidiary of Brookfield Infrastructure Partners, the companies said July 31.

The transaction is valued at about $1.45 billion, including $500 million in non-recourse debt, and marks the latest step in Shell’s plan to streamline its portfolio and focus on areas where it has greater scale and competitive advantage.

The sale follows Brookfield’s April announcement that it would acquire Colonial Pipeline, the largest U.S. refined products system, in a $9 billion deal that includes debt, Reuters reported. The pipeline spans more than 5,500 miles from Houston to New York Harbor and transports about 100 million gallons of gasoline, diesel, and jet fuel each day.

Colonial Enterprises, which fully owns Colonial Pipeline Company and Colonial Marketing Company, was previously held by five partners: Shell, Koch Capital Investments, KKR-Keats Pipeline Investors, La Caisse, and IFM Investors. All parties have now divested their shares to Brookfield.