According to Colonial’s website, the Alpharetta, Georgia-based company is privately held and owned by five entities. (Source: Shutterstock)
The largest refined products pipeline network in the U.S. could be up for sale soon, according to news reports on Oct. 29.
Colonial Pipeline and company advisers are considering a $10 billion sale. The company did not respond to a request for comment prior to publication.
Colonial’s 5,500-mile pipeline network carries more than 100,000 gallons of fuel to an area stretching from Houston to New Jersey. Bloomberg News, which broke the story, attributed the information to anonymous sources familiar with talks of a potential deal. Bloomberg’s sources said a sale was one of several options being considered and that a definite decision had not been made.
According to Colonial’s website, the Alpharetta, Georgia-based company is privately held and owned by five entities: CDPQ Colonial Partners LP; IFM (US) Colonial Pipeline 2 LLC; KKR-Keats Pipeline Investors LP; Koch Capital Investments Co. LLC; and Shell Midstream Operating LLC.
Several speakers at Hart Energy’s A&D Strategies and Opportunities Conference on Oct. 23 in Dallas discussed the shrinking pool of major assets on the market for the major midstream companies to buy. The number of deals has fallen off in 2024, said TD Cowen analyst David Deckelbaum.
However, the major public companies are under pressure to find acquisitions to remain relevant to the broader investment market, Deckelbaum said.
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