ArcLight acquires interest in Natural Gas Pipeline Company of America, one of the largest natural gas infrastructure assets in North America
ArcLight Capital Partners, LLC announced its managed fund has acquired a 25% interest in Natural Gas Pipeline Company of America (NGPL), a strategic natural gas infrastructure system. As a result of the transaction, ArcLight will become the largest owner of NGPL with a 62.5% economic ownership interest, alongside its strategic partner Kinder Morgan, Inc. Kinder Morgan continues to own a 37.5% economic interest and operates NGPL.
NGPL is one of the largest interstate pipeline systems in the country, spanning nine states, supplying critical power and heating markets across its footprint and liquefied natural gas facilities in Texas and Louisiana. With ~9,100 miles of pipeline, compressor stations totaling ~1 million horsepower, and 288 billion cubic feet of storage, NGPL provides critical energy, access, reliability and supply from all major U.S. natural gas basins.
"The U.S. is seeing historic levels of power demand growth, from both electrification and AI, which we believe will continue well into the next decade. Critical infrastructure assets like NGPL will be increasingly necessary to providing both reliability and the ability to help meet the growing infrastructure needs associated with these two investment mega trends," said Dan Revers, Founder of ArcLight. "This acquisition builds on ArcLight's deep history, dating back to 2001, of investing in critical gas infrastructure."
"We believe NGPL represents a strategic natural gas infrastructure asset that cannot be replicated today and that has significant opportunities to help utilities, LNG exporters, data center developers and hyper scalers meet their growing gas infrastructure needs," said Lucius Taylor, Partner at ArcLight. "This continued investment in NGPL also reflects ArcLight's ability to be a value-added partner and expands our strategic partnership with Kinder Morgan."
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