Shell Midstream Operating LLC (SMUS), a subsidiary of Shell plc, has agreed to sell its 16.125 per cent interest in Colonial Enterprises, Inc. to Colossus AcquireCo LLC, a wholly owned subsidiary of Brookfield Infrastructure Partners L.P. and its institutional partners, for US$1.45 billion.

The transaction is part of a broader agreement in which all co-owners of Colonial will divest their shares, resulting in Brookfield acquiring 100 per cent ownership of Colonial Enterprises for an enterprise value of approximately US$9 billion.

Colonial Enterprises is currently owned by 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 (15.795%).

The sale values Shell’s share at US$1.45 billion, which includes about US$500 million in non-recourse debt and excludes customary closing adjustments.

Colonial operates as an independent company and fully owns Colonial Pipeline Company (CPC), which manages the largest refined products pipeline system in the United States.

Spanning approximately 8,800 kilometres from Texas to New York, the Colonial Pipeline transports oil products from the US Gulf Coast to the Atlantic Seaboard, serving as a critical artery for the nation’s energy infrastructure.

Andrew Smith, President of Shell Trading & Supply, commented: “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.”

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

The United States remains a key market for Shell, with operations in all 50 states and a workforce of more than 12,000 employees supporting both traditional and renewable energy initiatives.

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