Brookfield Offloads Pipeline Stake as Part of $1.7B Exit
Brookfield Infrastructure Partners (BIP) has agreed to sell its remaining 25% interest in the Natural Gas Pipeline Company of America (NGPL) to funds managed by ArcLight Capital Partners. This transaction marks BIP’s complete exit from its investment, a significant move that has generated over $1.7 billion in total proceeds as part of its capital recycling strategy.
NGPL operates an extensive network that transports natural gas from the Texas Permian Basin and the Gulf of Mexico to the Chicago metropolitan area. BIP entered this sector in February 2009 as part of a consortium that included Kinder Morgan, the Canadian Public Sector Pension Investment Board, and the Dutch pension fund PGGM. Together, this consortium acquired an 80% stake in NGPL, with BIP initially securing a 27% interest.
The sale locks in an 18% internal rate of return and a 3x multiple of invested capital, calculated since NGPL’s recapitalization in 2015, per BIP.
ArcLight Capital Partners, a firm that has owned, controlled, or operated over 47,000 miles of electric and gas transmission infrastructure since its founding in 2001, recently purchased a 25% equity stake in the Gulf Coast Express Pipeline from Phillips 66 for $865 million last month.
The divestiture of its stake in NGPL aligns with BIP’s broader strategy to monetize assets, targeting $5 billion to $6 billion in asset sales over the next two years.
Alongside the NGPL transaction, BIP has initiated the monetization of its data center holdings. The firm announced it has entered into an agreement to sell a 30% stake in a 244-megawatt portfolio of operational data center sites in Europe for approximately $460 million.
“Securing these two transactions adds to the excellent start we have had to the year,” said Brookfield Infrastructure Partners CEO Sam Pollock. The firm has already secured over $700 million in proceeds from asset sales since the start of 2025, with projections to reach nearly $900 million in the near term.
CIBC Capital Markets and RBC Capital Markets served as financial advisors to Brookfield Infrastructure Partners, with Vinson & Elkins as legal advisor.