Shell agrees to sell Colonial Enterprises stake to Brookfield subsidiary for $1.45 billion

Shell Midstream Operating LLC (SMUS), a subsidiary of Shell plc, has reached an agreement to sell its 16.125% interest in Colonial Enterprises, Inc. to a wholly owned subsidiary of Brookfield Infrastructure Partners L.P. and its institutional partners in a deal worth $1.45 billion. 

The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals. 

Andrew Smith, President of Shell Trading & Supply, said: "This divestment reflects our focus on performance, discipline and simplification. It will allow us to concentrate on areas where we have scale and competitive advantage." 

The sale is part of a larger transaction in which all five co-owners of Colonial Enterprises have collectively agreed to sell their entire holdings to Brookfield. The other stakeholders include Koch Capital Investments Company (28.088%), KKR-Keats Pipeline Investors (23.443%), Caisse de dépôt et placement du Québec (16.549%) and IFM Investors (15.795%). 

The $1.45 billion valuation of Shell's interest includes approximately $500 million in non-recourse debt, excluding customary closing adjustments. 

Colonial operates independently and owns both Colonial Pipeline Company (CPC) and Colonial Marketing Company. CPC manages the crucial transportation network that moves petroleum products from refineries along the US Gulf Coast to markets throughout the Atlantic Seaboard region. 

Shell Midstream Operating LLC is an indirect, wholly owned subsidiary of Shell Pipeline Company LP and serves as the largest pipeline operator in the Gulf of America, transporting 1.5 billion barrels of crude oil, refined products, chemicals and natural gas liquids annually through its network across 12 states. 

The United States remains a key market for Shell, where it maintains interests across all 50 states and employs more than 12,000 people working on current energy supply needs while developing solutions for future energy challenges.