Ares Management Corporation is acquiring a US pipeline asset in a $1.1bn (€939m) deal from affiliates of XPLR Infrastructure, which was formerly known as NextEra Energy Partners.
Ares, which is investing through its infrastructure opportunities strategy, said it has acquired Meade Pipeline, the independent power producer and owner of approximately 40% of the Central Penn Line (CPL), an 180-mile pipeline that transports natural gas.
CPL transports natural gas from the Marcellus and Utica Shale regions of Northeast Pennsylvania to markets in the Northeast, Mid-Atlantic and Southeast by connecting to the Williams Companies’ Transcontinental Gas Pipe Line (Transco).
Transco is a joint owner and operates CPL under two long-term triple-net-lease agreements.
Steve Porto, partner in the Ares infrastructure opportunities strategy, said: “Driven by electrification, industrial activity and increasing LNG exports, we are witnessing tremendous growth in power and natural gas demand.
“This investment reflects our conviction in Meade’s value proposition as well as our broader focus on identifying quality, strategically-located assets that can efficiently deliver lower-cost energy to demand centres.”
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