Shell, partners sell Colonial Enterprises midstream assets to Brookfield subsidiary

Brookfield Infrastructure Partners LP has agreed to acquire 100% of Colonial Enterprises Inc., a midstream asset portfolio including Colonial Pipeline, for an enterprise value of about $9 billion. 

Colonial Enterprises—divided among partners Shell Midstream Operating LLC (16.125%), Koch Capital Investments Co. LLC (28.088%); KKR-Keats Pipeline Investors LP (23.443%); Caisse de dépôt et placement du Québec (16.549%); and IFM Investors (IFM) (15.795%)—is comprised of the largest refined products system in the US, spanning about 5,500 miles between Texas and New York. 

Colonial operates as an independent company and fully owns Colonial Pipeline Co. (CPC), a non-operated venture, as well as Colonial Marketing Co. CPC provides oil products transportation services from the US Gulf Coast to the US Atlantic Seaboard.

The sale values Shell's share of Colonial at $1.45 billion, inclusive of about $500 million in non-recourse debt and excluding customary closing adjustments.