Shell Midstream Operating LLC (SMUS), a subsidiary of Shell plc, has entered into an agreement to divest its 16.125% stake in Colonial Enterprises, Inc. The stake will be sold to Colossus AcquireCo LLC, a wholly owned subsidiary of Brookfield Infrastructure Partners L.P. along with its institutional partners, collectively referred to as Brookfield. The total value of the transaction is $1.45 billion.

Commenting on the deal, Andrew Smith, President of Shell Trading & Supply, stated, “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.”

This strategic move aligns with Shell’s broader aim of optimizing its portfolio and focusing resources on core assets that offer long-term value and competitiveness. The transaction is still subject to customary regulatory approvals and is anticipated to be finalized in the fourth quarter of 2025.

By selling its interest in Colonial, Shell is taking a step toward streamlining operations and enhancing operational efficiency. Brookfield, known for its investments in infrastructure and long-term assets, will expand its presence in the U.S. energy infrastructure sector through this acquisition.

Overall, this deal represents a realignment of Shell’s strategic priorities, allowing it to exit non-core investments while enabling Brookfield to strengthen its footprint in energy transport and infrastructure. Both companies are expected to benefit from this transaction once it reaches completion later in the year.

Shell and its co-owners of Colonial Enterprises, Inc. have agreed to sell 100% of their shares in Colonial to Brookfield. The ownership of 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 (15.795%).

Shell’s portion of the transaction is valued at $1.45 billion, which includes approximately $500 million in non-recourse debt and excludes customary closing adjustments.

Colonial operates as an independent company and fully owns Colonial Pipeline Company (CPC), a non-operated joint venture that provides oil product transportation services from the U.S. Gulf Coast to the Atlantic Seaboard. It also owns Colonial Marketing Company.

Shell Midstream Operating LLC is an indirect, wholly owned subsidiary of Shell Pipeline Company LP. It 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 U.S. remains a key market for Shell. The company has operations in all 50 states and employs over 12,000 people. Its American portfolio spans oil, natural gas, petrochemicals, lubricants, and refined fuels, along with renewable energy ventures in wind, solar, and electric vehicle charging.