Shell to Sell Its Stake in Colonial Pipeline Parent Company to Brookfield for $1.45 Billion

Shell has agreed to sell its 49% interest in Colonial Enterprises, the parent company of Colonial Pipeline, to Canadian investment firm Brookfield Asset Management in a $1.45 billion deal as part of a broader portfolio simplification strategy.

Photo: Waldo Swiegers/Bloomberg News

The transaction removes Shell from ownership in one of the largest refined products pipeline systems in the U.S., which spans more than 5,500 miles and supplies roughly 45% of the East Coast’s fuel. Brookfield, known for its investments in infrastructure and energy transition assets, will become a key stakeholder in a mission-critical segment of U.S. fuel logistics.

Shell executives described the move as consistent with the company’s goal to optimize its asset base and focus more on renewable energy, LNG, and integrated value chains. The deal is expected to close later this year, pending regulatory approval.

corpbrief insight:

Shell is shifting from pipeline to portfolio play. This deal underscores how energy giants are rebalancing legacy infrastructure in favor of future-facing assets.