Brookfield Asset Management is leading the race to acquire Colonial Pipeline Co. in a deal that could exceed $10bn, including debt. 

Sources familiar with the matter indicate that Brookfield has advanced past rival infrastructure funds and strategic buyers following the submission of final offers last week.

Colonial Pipeline, the largest fuel transportation network in the US, operates over 5,500 miles of pipeline from Houston to New Jersey. The company is currently owned by private equity giant KKR & Co., Canadian pension fund Caisse de Dépôt et Placement du Québec (CDPQ), oil major Shell Plc, infrastructure investor IFM Investors, and Koch Industries. Some of these stakeholders may opt to retain stakes in any potential transaction.

Colonial has been exploring strategic options, including a possible sale, since October. While discussions continue, no final decision has been made. Representatives from Brookfield, Colonial, KKR, CDPQ, and Shell declined to comment, while IFM and Koch did not immediately respond to inquiries.

Despite strong demand for energy infrastructure, developing new pipeline networks in the US faces regulatory hurdles, legal battles, and political resistance. Colonial CEO Melanie Little recently stated that the company’s network, built in the 1960s within 18 months, would be impossible to replicate under current conditions.

Brookfield has a track record of investing in major pipeline assets worldwide. The firm holds a controlling stake in Brazil’s NTS pipeline and was part of a consortium that acquired a $10.1bn stake in Abu Dhabi’s natural gas pipelines in 2020.

If Brookfield secures the deal, it would mark one of the largest private equity-backed energy infrastructure acquisitions in recent years, reinforcing the firm’s growing presence in global pipeline investments.