(Reuters) - Brookfield Asset Management ( BAM ) is emerging as the frontrunner to acquire Colonial Pipeline, in a deal that could value the pipeline operator at $10 billion or more including debt, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The investment firm is seen as the strongest contender after final offers were submitted last week, the report said.

Colonial's pipeline system stretches over 5,500 miles from Houston in Texas to New York's harbor. It moves 100 million gallons of fuel daily, including gasoline, jet fuel, diesel and heating oil, according to the company's website.

Talks were ongoing and no final decisions have been taken, the report added, and some of Colonial Pipeline's backers could opt to retain stakes in any deal.

Brookfield declined to comment on the story when contacted by Reuters, while a spokesperson for Colonial Pipeline said all queries around its ownership should be directed to its owners.

Reuters reported in June last year, citing sources, that some of pipeline's owners were exploring divesting their stakes.

Colonial Pipeline is owned by Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), IFM Investors, KKR, Shell and Koch.