Published: October 30, 2024 |

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Colonial Pipeline, operator of the largest U.S. fuel pipeline system, is weighing options including a sale that could value the company at more than $10 billion, Bloomberg reported Tuesday.

The pipeline could draw interest from financial institutions such as infrastructure funds, as well as strategic suitors, according to the report.

Colonial Pipeline, which operates the vital fuel pipeline system that covers more than 5,500 miles from Houston to New Jersey, is owned by subsidiaries of Shell, KKR, Canadian pension fund Caisse de Dépôt et Placement du Québec, IFM Investors, and Koch Industries.

Building oil and gas pipelines in the U.S. is difficult due to legal challenges and political opposition in some states, and dealmaking in the sector has been mostly small-scale, although things may be changing.

ONEOK agreed recently to buy Global Infrastructure Partners’ entire interest in EnLink Midstream and its equity interests in Medallion Midstream, the largest closely held crude gathering and transportation system in the Permian Basin, and Targa Resources reportedly has received takeover interest from Williams Cos.

Source: Seeking Alpha

Colonial Pipeline Company, founded in 1962, connects refineries — primarily located in the Gulf Coast — with customers and markets throughout the Southern and Eastern United States through a pipeline system that spans more than 5,500 miles. The company delivers refined petroleum products such as gasoline, diesel, jet fuel, home heating oil, and fuel for the U.S. military. Colonial is committed to safety and environmental stewardship across its operations.

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