Brookfield Acquires Colonial Pipeline | Rigzone

Brookfield Infrastructure Partners LP (BIP) said Thursday it had completed the purchase of Colonial Enterprises Inc. from a consortium including Shell PLC for an enterprise value of about $9 billion.

Colonial owns the namesake pipeline, the biggest pipeline for refined products in the United States in terms of capacity. Spanning 5,500 miles from Texas to New York, it carries up to 2.5 million barrels a day. Colonial says the pipeline transports about 45 percent of fuels consumed on the East Coast, serving over 50 million consumers in 14 states.

Colonial was acquired from Koch Capital Investments Co. LLC (28.088 percent), KKR-Keats Pipeline Investors LP (23.443 percent), La Caisse (16.549 percent), IFM Investors (15.795 percent) and Shell Midstream Operating LLC (16.125 percent).

“This acquisition was completed at an attractive transaction multiple of 9x EBITDA and we are excited to be the first single owner of this system which has had split ownership since it was constructed”, BIP said in a statement online. “We expect to benefit from a mid-teen cash yield, resulting in a seven-year payback period.

“Near-term efforts will be focused on business integration and initiating our value creation activities.

“The total equity consideration is approximately $3.4 billion (BIP’s share – approximately $500 million)”.

Shell said separately, “The divestment reflects Shell’s focus on performance, discipline and simplification and enables the company to concentrate on areas where it has scale and competitive advantage”.

“The sale values Shell’s share of Colonial at $1.45 billion, inclusive of approximately $500 million in non-recourse debt and excluding customary closing adjustments”, it added.

Earlier in the second quarter of 2025, BIP completed the sale of its remaining 25 percent stake in its U.S. gas pipeline to co-owner ArcLight Capital Partners LLC. ArcLight now owns 62.5 percent of Natural Gas Pipeline Company of America (NGPL). Kinder Morgan retains a 37.5 percent interest as operator. 

“This sale represents a complete and successful exit of the business, generating total proceeds of over $1.7 billion, crystalizing an attractive 18 percent IRR and a 3x multiple of capital on our investment since our recapitalization in 2015”, BIP said March 21 announcing the deal.

BIP initially obtained a 27 percent stake in the pipeline by purchasing Babcock & Brown Infrastructure. In 2015 it raised its stake to 50 percent.

The NGPL pipeline stretches about 9,100 miles. NGPL also has compressor stations totaling about one million horsepower and 288 billion cubic feet of storage.

“The U.S. is seeing historic levels of power demand growth, from both electrification and AI, which we believe will continue well into the next decade”, ArcLight founder Dan Revers said in a company statement May 13 announcing the completion of the transaction. “Critical infrastructure assets like NGPL will be increasingly necessary to providing both reliability and the ability to help meet the growing infrastructure needs associated with these two investment mega trends”.

“We believe NGPL represents a strategic natural gas infrastructure asset that cannot be replicated today and that has significant opportunities to help utilities, LNG exporters, data center developers and hyper scalers meet their growing gas infrastructure needs”, added Lucius Taylor, partner at ArcLight.

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