Brookfield Infrastructure Partners and its institutional affiliates have agreed to acquire Colonial Enterprises, the operator of the largest fuel pipeline in the US, in a $9bn transaction that underscores growing private equity interest in strategic energy infrastructure.

The acquisition will see Brookfield take full control of Colonial from a consortium of five shareholders, including KKR (23.4%), CDPQ (16.5%), IFM Investors (15.8%), Koch Inc. (28.1%), and Shell’s Midstream Operating unit (16.125%), which is exiting its stake for $1.45bn.

Colonial Pipeline spans 5,500 miles from Texas to New Jersey and supplies the majority of gasoline, diesel, and jet fuel to the US East Coast. Its critical infrastructure status was highlighted in 2021, when a cyberattack forced a five-day shutdown, resulting in widespread fuel shortages.

The transaction comes at a time when regulatory and permitting challenges continue to hinder the construction of new oil and gas pipelines in the US, increasing the strategic value of existing assets.

Brookfield’s acquisition of Colonial builds on its global pipeline portfolio, which includes a controlling stake in Brazil’s NTS pipeline and a $10.1bn investment in Abu Dhabi’s natural gas pipelines in 2020.

Debt financing for the deal is being led by Morgan Stanley and Mizuho Bank. Brookfield was advised by Jefferies, Greenhill & Co., and Morgan Stanley, with legal counsel from Kirkland & Ellis. The deal is expected to close in Q4 2025.