Shell Midstream Operating LLC (SMUS), a subsidiary of Shell, has agreed to sell its 16.125% interest in Colonial Enterprises, Inc. to Colossus AcquireCo, a wholly owned subsidiary of Brookfield Infrastructure Partners and its institutional partners, for $1.45 billion.
'This divestment reflects our focus on performance, discipline and simplification,' said Andrew Smith, President of Shell Trading & Supply. 'It will allow us to concentrate on areas where we have scale and competitive advantage.'
The transaction is subject to regulatory approvals and is expected to close in Q4 2025.
Background
- Together with Shell, the co-owners of Colonial Enterprises, Inc. have agreed to sell 100% of their Colonial shares to Brookfield. Colonial is divided among five partners: Shell Midstream Operating LLC (16.125%), Koch Capital Investments Company, LLC (28.088%); KKR-Keats Pipeline Investors, L.P. (23.443%); Caisse de dépôt et placement du Québec (16.549%); and IFM Investors (IFM) (15.795%).
- The sale values Shell’s share of Colonial at $1.45 billion, inclusive of approximately $500 million in non-recourse debt and excluding customary closing adjustments.
- Colonial operates as an independent company and fully owns Colonial Pipeline Company (CPC), a non-operated venture, as well as Colonial Marketing Company. CPC provides oil products transportation services from the US Gulf Coast to the US Atlantic Seaboard.
- Shell Midstream Operating LLC is an indirect, wholly owned subsidiary of Shell Pipeline Company LP, and the largest pipeline operator in the Gulf of America. It transports 1.5 billion barrels of crude oil, refined products, chemicals and NGLs annually through its vast network of pipelines and tank farms across 12 states and the Gulf of America.
- The U.S. is a key market for Shell, where it has interests in 50 states and employs more than 12,000 people who work to provide a secure supply of energy today, while tackling the energy challenges of the future. Shell's U.S. portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, lubricants and refined fuel products along with renewables such as wind, solar, and mobility segments like electric vehicle charging.
Source: Shell
