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I Squared Capital acquires majority interest in Whistler Pipeline

Published by , Editorial Assistant
World Pipelines,

I Squared Capital, through its ISQ Global Infrastructure Fund III, has acquired a controlling interest in the Whistler Pipeline, a leading natural gas infrastructure asset, from First Infrastructure Capital, Ridgemont Equity Partners, affiliates of West Texas Gas Inc., affiliates of Stonepeak Partners LP and the WhiteWater management team.

The Whistler Pipeline is a leading core energy infrastructure system connecting the Permian Basin’s growing natural gas supply to LNG, Mexico, and Gulf Coast demand. Whistler will have direct connections into LNG facilities in the Corpus Christi area. Nearly all current capacity is contracted under long-term, fixed-fee minimum volume commitments, primarily with investment grade counterparties.

I Squared Capital sees increasing long-term demand for natural gas across the US Gulf Coast due to the growth in LNG liquefaction capacity being constructed in the region, as well as growing demand from Mexico. The Whistler pipeline offers the rare combination of strong free cash flow, high-quality contracts, and operating rights on highly strategic natural gas infrastructure.

The management team, who retain a significant portion of equity in the business, has an established reputation for growing contracted cash flows through developing and operating greenfield projects and has identified several initiatives to accelerate further growth of the platform. Christer Rundlof, CEO of WhiteWater, said, “I’d like to thank our JV partners, shippers and current investors for their support. Whistler has been a tremendous success providing a much-needed connection between the Permian Basin and gas demand. We are very excited about the partnership with I Squared and look forward to continuing to serve our customers with Whistler and future, related projects.”

Given the long-term demand for LNG infrastructure in this strategic area, I Squared Capital is evaluating additional investments to promote the energy transition and support the security of the global energy supply at a critical time.

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