ArcLight Buys 25% Stake in Key Permian Gas Pipeline for $865M 

ArcLight Capital Partners purchased a 25% equity stake in the Gulf Coast Express Pipeline (GCX) from Phillips 66 for $865 million. After the transaction, the pipeline will be jointly owned by Kinder Morgan and ArcLight, with a subsidiary of Kinder Morgan continuing to operate GCX. 

GCX is a 500-mile natural gas pipeline with a capacity of around two billion cubic feet per day. It is backed by long-term contracts with various shippers and plays a crucial role in transporting gas from the Permian Basin to important U.S. Gulf Coast markets, including the expanding liquefied natural gas (LNG) export market in South Texas. 

“As the U.S. seeks to meet the rapidly growing power demand needs associated with AI and data center infrastructure, we believe more natural gas related infrastructure, both power and midstream assets, will be needed to meet this objective,” said ArcLight founder Dan Revers. 

Since 2001, ArcLight has owned, controlled, or operated more than 47,000 miles of electric and gas transmission infrastructure, solidifying its position as one of the largest private owners in the sector. 

A notable recent investment in ArcLight was a $500 million minority stake from the Abu Dhabi Investment Authority in its AlphaGen power portfolio announced in January. 

Barclays Capital served as financial advisor on the transaction, with Latham & Watkins providing legal counsel to ArcLight.