Brookfield to Sell Pipeline Stake to ArcLight as Part of $1.7 Billion Exit
(P&GJ) — Brookfield Infrastructure Partners L.P. has agreed to sell its remaining 25% interest in NGPL Holdings LLC to funds managed by ArcLight Capital Partners, completing its exit from the U.S. natural gas pipeline operator.
The transaction, expected to close in the second quarter of 2025, marks the final step in Brookfield’s long-term investment in the business, generating over $1.7 billion in total proceeds.
Brookfield initially acquired a 27% stake in the NGPL system through its 2009 purchase of Babcock & Brown Infrastructure, later increasing its ownership to 50% through a 2015 recapitalization. During its ownership, Brookfield focused on organic growth, including capacity expansions to connect key natural gas supply areas with utility markets and LNG export facilities.
The sale to ArcLight — already a part-owner — will bring its total stake in NGPL Holdings to 62.5%, while Kinder Morgan will continue to operate the pipeline and retain its 37.5% stake.
NGPL (Natural Gas Pipeline Company of America) is one of the largest U.S. interstate pipeline systems, with approximately 9,100 miles of pipe, over 1 million compression horsepower, and 288 billion cubic feet of working gas storage. It is a major supplier to the Chicago-area market and LNG export terminals on the Texas and Louisiana Gulf Coast.
Brookfield’s sale comes amid its broader capital recycling strategy, which has already generated over $700 million in proceeds this year and targets $5 to $6 billion in asset sales over the next two years.
“This marks meaningful progress toward our asset monetization goal… with more to come,” said Sam Pollock, CEO of Brookfield Infrastructure.
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