ArcLight acquires interest in Natural Gas Pipeline Company
Published by Alfred Hamer,
Editorial Assistant
World Pipelines,
ArcLight Capital Partners, LLC has announced its managed fund has acquired a 25% interest in Natural Gas Pipeline Company of America (NGPL), a strategic natural gas infrastructure system. As a result of the transaction, ArcLight will become the largest owner of NGPL with a 62.5% economic ownership interest, alongside its strategic partner Kinder Morgan, Inc. Kinder Morgan continues to own a 37.5% economic interest and operates NGPL.
NGPL is one of the largest interstate pipeline systems in the country, spanning nine states, supplying critical power and heating markets across its footprint and liquefied natural gas facilities in Texas and Louisiana. With ~9100 miles of pipeline, compressor stations totalling ~1 million hp, and 288 billion f3 of storage, NGPL provides critical energy, access, reliability and supply from all major US natural gas basins.
"The US is seeing historic levels of power demand growth, from both electrification and AI, which we believe will continue well into the next decade. Critical infrastructure assets like NGPL will be increasingly necessary to providing both reliability and the ability to help meet the growing infrastructure needs associated with these two investment mega trends," said Dan Revers, Founder of ArcLight. "This acquisition builds on ArcLight's deep history, dating back to 2001, of investing in critical gas infrastructure."
"We believe NGPL represents a strategic natural gas infrastructure asset that cannot be replicated today and that has significant opportunities to help utilities, LNG exporters, data centre developers and hyper scalers meet their growing gas infrastructure needs," said Lucius Taylor, Partner at ArcLight. "This continued investment in NGPL also reflects ArcLight's ability to be a value-added partner and expands our strategic partnership with Kinder Morgan."
Since 2001, ArcLight has owned, controlled, or operated over ~65 GW of assets and 47 000 miles of electric and gas transmission infrastructure with US$80 billion of enterprise value. With its deep industry experience and suite of internal operational and technical resources, ArcLight believes it is well positioned to deliver the electric infrastructure solutions required by AI and data center power demand. Today, ArcLight manages one of the largest private power infrastructure portfolios in North America.
Terms of the transaction were not disclosed. Barclays Capital Inc. acted as financial advisor and Latham & Watkins LLP acted as legal counsel to ArcLight on the transaction.
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