Kinder Morgan will continue as Natural Gas Pipeline Company of America’s operator following Brookfield Infrastructure’s sale of a 25% stake to Arclight Capital Partners. (Source: Shutterstock.com)
Brookfield Infrastructure will sell its final 25% stake in the Natural Gas Pipeline Co. of America (NGPL), one of the largest networks in the U.S., to ArcLight Capital Partners, Brookfield said March 21.
Once the deal is completed, ArcLight will own a 62.5% stake in the line.
“This sale represents a complete and successful exit of the business, generating total proceeds of over $1.7 billion,” Brookfield’s press release stated.
Brookfield Infrastructure will sell its final 25% stake in the Natural Gas Pipeline Company of America (NGPL), one of the largest networks in the U.S., to ArcLight Capital Partners, Brookfield said March 21.
Once the deal is completed, ArcLight will own a 62.5% stake in the line.
“This sale represents a complete and successful exit of the business, generating total proceeds of over $1.7 billion,” Brookfield’s press release stated. The price Arclight paid for the 25% stake wasn't specified.
NGPL is a network of 9,100 miles and a total capacity of 288 Bcf/d. It’s one of the primary providers of natural gas to the Chicago area and its pipes stretch southward to LNG export markets in Texas and Louisiana.
Kinder Morgan (KMI) operates the NGPL network and maintains its 37.5% stake.
In 2015, Brookings acquired a 50% ownership share of the network.
Brookfield currently has an asset monetization goal of $5 to $6 billion over the next two years, CEO Sam Pollock said in the press release.
“We continue to experience strong activity levels and buyer interest in our in-progress capital recycling initiatives, with more to come,” Pollock said.
Kinder Morgan is currently implementing a $72 million, 300 MMcf/d capacity expansion project on the portion of the NGPL network in Texas and Louisiana, as approved by the U.S. Federal Energy Regulatory Commission in January. The expansion project will supply LNG plants along the Gulf Coast.
Vinson & Elkins advised Brookfield in the agreement for the sale to ArcLight. The transaction was signed March 21 and is expected to close in second-quarter 2025.
The Vinson & Elkins team was led by partner Benji Barron and senior associate Jordan Fossee, with assistance from associates Chandler Spinks, Phil Greenfield, and Ronnie Braxton.
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