ArcLight Capital Partners has become the largest shareholder of Natural Gas Pipeline Company of America (NGPL) with the acquisition of Brookfield Infrastructure Partners’s (BIP) 25% interest to become a 62.5% shareholder, with Kinder Morgan retaining its 37.5% stake in NGPL.
NGPL is one of the largest interstate pipeline systems in the US, spanning nine states, supplying power and heating markets across its footprint and liquefied natural gas facilities in Texas and Louisiana.
The company has approximately 9,100 miles of pipeline, more than one million compression horsepower and 288bn cubic feet of working natural gas storage.
In 2021, BIP and Kinder Morgan – then equal partners – sold a 25% stake in NGPL to ArcLight for $830m (€767m), a deal that valued NGPL at $5.2bn at the time.
Again in June 2023, ArcLight increased its holding in NGPL from 25% to 37.5% with the acquisition of part of BIP’s stake. As a result of that transaction, ArcLight became an equal shareholder alongside Kinder Morgan with Brookfield holding a 25% interest.
Dan Revers, founder of ArcLight, said: “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.
“This acquisition builds on ArcLight’s deep history, dating back to 2001, of investing in critical gas infrastructure.”
Since 2001, ArcLight has owned, controlled, or operated over 65GW of assets and 47,000 miles of electric and gas transmission infrastructure with $80bn of enterprise value.
Lucius Taylor, partner at ArcLight, said: “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 center developers and hyperscalers meet their growing gas infrastructure needs.
“This continued investment in NGPL also reflects ArcLight’s ability to be a value-added partner and expands our strategic partnership with Kinder Morgan.”
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