Arclight Buys Additional 12.5% Stake in NGPL from Brookfield Infrastructure

ArcLight Capital Partners’ affiliate has acquired an additional 12.5% stake in Natural Gas Pipeline Company of America LLC (NGPL) from Brookfield Infrastructure Partners.

Financial terms of the transaction were not disclosed.

The middle-market, value-add infrastructure investment firm’s stake in NGPL has now increased to 37.5%. Brookfield Infrastructure owns a 25% interest while Kinder Morgan holds a 37.5% interest.

In 2021, Brookfield and Kinder Morgan, then equal partners, sold a 25% stake in NGPL to ArcLight for $830 million, a deal that valued NGPL at $5.2 billion at the time.

“Our investment in NGPL continues to be highly representative of ArcLight’s thesis in strategic natural gas infrastructure,” said Lucius Taylor, Partner at ArcLight

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 acquired Targa Resources’ wholly owned subsidiary, which owns a 25% stake in the Gulf Coast Express Pipeline (GCX) in the Permian basin, in Waha, TX, for $857 million.