ArcLight Capital Partners' affiliate has acquired an additional 12.5% stake in Natural Gas Pipeline Company of America LLC (NGPL) from Brookfield Infrastructure Partners, for an undisclosed sum.
With the transaction, ArcLight's stake in NGPL has increased to 37.5%. Brookfield Infrastructure owns a 25% interest while Kinder Morgan holds a 37.5% interest.
ArcLight partner Lucius Taylor said: "Our investment in NGPL continues to be highly representative of ArcLight's thesis in strategic natural gas infrastructure.
“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.”
One of the largest interstate pipeline systems in the US, NGPL supplies natural gas into the high-demand Chicago-area market.
It also supplies natural gas to large LNG export facilities and other markets on the Texas and Louisiana Gulf Coast.
With approximately 9,100 miles of pipeline, NGPL has more than one million compression horsepower and 288 billion cubic feet (bcf) of working natural gas storage.
Last year, ArcLight Capital Partners acquired Targa Resources’ wholly owned subsidiary, which owns a 25% stake in the Gulf Coast Express Pipeline (GCX) in the Permian basin, in Waha, Texas, for $857m.
At 853km, GCX has the capacity to transport up to 2bcf per day of natural gas.