Shell sells $1.5bn stake in Colonial Pipeline as Brookfield takes control
By Benjamin Chiou
Date: Friday 04 Apr 2025
(Sharecast News) - Shell is to sell its stake in Colonial Pipeline to Brookfield Infrastructure Partnership as part of a $9bn acquisition by the latter of the largest fuel transportation system in the US.
Shell announced last on Thursday that its division, Shell Midstream Operating, is offloading its 16.125% interest in Colonial Enterprises to Brookfield subsidiary Colossus AcquireCo for $1.45bn.
At the same time, all the other co-owners of Colonial Enterprises - Koch Capital Investments (28.088%); KKR-Keats Pipeline Investors (23.443%); Caisse de dépôt et placement du Québec (16.549%); and IFM Investors (15.795%) - have also agreed to sell their interests to Brookfield, with a total acquisition price of around $9bn.
Shell said the $1.45bn valuation is inclusive of $500m in non-recourse debt and excluding customary closing adjustments.
"This divestment reflects our focus on performance, discipline and simplification," said Andrew Smith, president of Shell Trading and Supply. "It will allow us to concentrate on areas where we have scale and competitive advantage."
Shell Midstream Operating, part of the Shell Pipeline Company, is the largest pipeline operator in the Gulf of Mexico, transporting 1.5m barrels of crude oil, refined products, chemicals and NGLs annually through its pipelines and tank farms across 12 states and the Gulf of Mexico.
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