By Ejekwu Chidiebere
Shell Midstream Operating LLC (SMUS), a subsidiary of Shell plc (“Shell”) says it has completed the sale of its 16.125% interest in Colonial Enterprises, Inc. (“Colonial”) to Colossus AcquireCo LLC, a wholly owned subsidiary of Brookfield Infrastructure Partners L.P. and its institutional partners (collectively, “Brookfield”). The deal had been announced earlier.
The divestment, according to the Oil Major, reflects its focus on performance, discipline and simplification and enables the Company to concentrate on areas where it has scale and competitive advantage.
Together with Shell, the co-owners of Colonial Enterprises, Inc., have sold 100% of their Colonial shares to Brookfield, and Colonial which was previously 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%); La Caisse (16.549%); and IFM Investors (IFM) (15.795%).
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, Shell said in an email statement posted to Energy Window International (Media).
It said Colonial operates as an independent company, with full ownership of Colonial Pipeline Company (CPC) a non-operated venture, as well as Colonial Marketing Company according to the statement. CPC provides oil products transportation services from the US Gulf Coast to the US Atlantic Seaboard.
Energy Window International (Media) also gathered that Shell Midstream Operating LLC is an indirect, wholly owned subsidiary of Shell Pipeline Company LP, and the largest pipeline operator in the Gulf of America. It transports 1.5 billion barrels of crude oil, refined products, chemicals and NGLs annually through its vast network of pipelines and tank farms across 12 states and the Gulf of America.
For Shell, the United States is one of the key business centers where it has interests in 50 states and employs more than 11,000 people who work to provide a secure supply of energy today, while tackling the energy challenges of the future. Adding that its US portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, lubricants and refined fuel products along with renewables such as wind, solar, and mobility segments like electric vehicle charging.