(Source: Shutterstock, ArcLight)
ArcLight Capital Partners has closed its $1.7 billion deal with Brookfield Infrastructure for an additional 25% stake in the Natural Gas Pipeline Co. of America (NGPL) infrastructure system, a source familiar with the deal told Hart Energy on May 13. Brookfield first announced the deal in March.
ArcLight now holds the largest stake in NGPL with a 62.5% interest in the system. Kinder Morgan Inc. remains the operator of the pipeline network with a 37.5% economic interest.
NGPL spans nine states with approximately 9,100 miles of pipeline. The system includes compressor stations capable of 1 million horsepower and 288 Bcf of storage and provides supply to LNG facilities in Texas and Louisiana.
ArcLight manages one of the largest private power infrastructure portfolios in North America. NGPL is a strategic asset that cannot be replicated today, ArcLight Partner Lucius Taylor said in a May 13 press release.
“The U.S. 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, ArcLight’s founder.
Barclays Capital Inc. acted as financial adviser and Latham & Watkins LLP acted as legal counsel to ArcLight on the transaction.
Recommended Reading
Deep Potential: Permian Woodford Delivers as Exxon, Mewbourne Join In
2025-05-22 - Oklahoma’s finest Woodford Shale developers are applying their learnings to the Permian Basin, where exploration of the deep bench is in its earliest innings.
Volatility to Slow Upstream M&A After $17B in Q1 Dealmaking—Enverus
2025-04-23 - Upstream deal markets are heading into territory reminiscent of the conditions seen in the first half of 2020, said Andrew Dittmar, Enverus’ principal M&A analyst.
Follow the Rigs: Minerals M&A Could Top $11B in ’25—Trauber
2025-04-15 - Minerals dealmaking could surpass $11 billion in 2025, fueled by deals in the Permian and in natural gas shale plays, says M&A expert Stephen Trauber.
New Exxon Proppant Tech Enhances Permian Basin Well Recovery
2025-05-05 - Lightweight proppants engineered from refinery coke are giving Exxon an up to 15% lift in Permian EURs. “We generally surprised ourselves with the improvements,” CEO Darren Woods said.
New E&P South Wind to Pursue Large-Scale M&A with PE Backing
2025-04-30 - After selling Fayetteville gas producer Flywheel Energy last year, the team is launching South Wind Exploration & Production with Kayne Anderson financing.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.