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.
Recommended Reading
Tamboran, Santos Agree to Study Possible Darwin LNG Expansion
2025-01-23 - Tamboran Resources Corp. and Santos Ltd. entered a memorandum of understanding for technical studies, which could lead to a 6 mtpa expansion of Darwin LNG.
EIA: NatGas Storage Withdrawal Misses Forecasts by 20 Nearly Bcf
2025-01-23 - Natural gas prices fell following the release of the U.S. Energy Information Administration’s weekly storage report showing a near-20 Bcf miss on analysts’ expectations.
Targa Pipeline Helps Spark US NGL Production High in 2024
2025-01-23 - Analysts said Targa Resources’ Daytona line released a Permian Basin bottleneck as NGLs continued to grow.
TotalEnergies' Mozambique LNG Project Faces Delay Beyond 2029
2025-01-22 - TotalEnergies' $20 billion Mozambique LNG project will not be operational by 2029 as hoped, the French oil major said on Jan. 22, citing the need to end force majeure and ensure security at the project site.
Ports in Texas Limit Activity Amid Cold Weather
2025-01-21 - Port Freeport on Jan. 21 said it expects limited vessel activity while Port Houston said all of its public facilities will remain closed through Wednesday as winter storm Enzo sweeps through Texas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.