ArcLight Capital Partners has increased its holding in Natural Gas Pipeline Company of America (NGPL) from 25% to 37.5% with the acquisition of part of Brookfield Infrastructure Partners’s (BIP) stake.

The middle-market, value-add infrastructure investment firm bought the 12.5% interest in NGPL from BIP for an undisclosed sum.

As a result of the transaction, ArcLight will own an equal stake with Kinder Morgan and Brookfield will hold 25%.

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.

NGPL is the largest transporter of natural gas into the Chicago-area market, as well as one of the largest interstate pipeline systems in the country. The company has approximately 9,100 miles of pipeline, more than one million compression horsepower and 288bn cubic feet of working natural gas storage.

Lucius Taylor, a partner at ArcLight, said the investment in NGPL continues to be highly representative of ArcLight’s thesis in strategic natural gas infrastructure.

Taylor said: “NGPL provides critical energy reliability and security services to utilities, enables increasing electrification in the US and supports the generational shift in supply-demand fundamentals driven by LNG export growth.

“In addition, we believe NGPL serves as a critical enabler to the future development of energy transition infrastructure.”

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