Shell Midstream Operating (SMUS), a subsidiary of Shell plc, has completed the sale of its 16.125% interest in Colonial Enterprises to a subsidiary of Brookfield Infrastructure Partners L.P. The divestment is part of Shell’s broader strategy to focus on performance, discipline, and simplification, allowing the company to concentrate on areas where it has scale and a competitive advantage.
The sale was part of a larger transaction in which all five co-owners of Colonial Enterprises, Inc., sold their shares to Brookfield. The other partners included Koch Capital Investments Company, LLC, KKR-Keats Pipeline Investors, L.P., La Caisse, and IFM Investors.
Shell’s share of the transaction is valued at $1.45 billion, which includes approximately $500 million in non-recourse debt and is subject to customary closing adjustments.
Colonial Enterprises, Inc. operates as an independent company and is the full owner of Colonial Pipeline Company (CPC). This major non-operated venture transports oil products from the U.S. Gulf Coast to the U.S. Atlantic Seaboard.
Shell’s U.S. operations remain a key focus for the company, with interests in 50 states and over 11,000 employees. Shell Pipeline Company LP, of which SMUS is an indirect subsidiary, is a major pipeline operator in the Gulf of America, transporting 1.5 billion barrels of various products annually.
The company’s U.S. portfolio encompasses traditional energy, petrochemicals, and refined products, as well as a growing presence in renewable energy sources, including wind, solar, and electric vehicle charging.
