ArcLight Takes Majority Stake in NGPL Pipeline System; Kinder Morgan Retains Minority Interest
(P&GJ) — ArcLight Capital Partners has acquired an additional 25% stake in Natural Gas Pipeline Company of America (NGPL), making the energy investment firm the pipeline system’s largest shareholder with a 62.5% economic interest. Kinder Morgan retains a 37.5% stake and will continue to operate the system.
NGPL, one of the largest interstate natural gas pipeline networks in the U.S., spans nine states with approximately 9,100 miles of pipeline, one million horsepower in compression, and 288 billion cubic feet of storage. The system supplies power and heating markets as well as liquefied natural gas (LNG) facilities in Texas and Louisiana.
"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,” said Dan Revers, founder of ArcLight. “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."
ArcLight partner Lucius Taylor called NGPL “a strategic natural gas infrastructure asset that cannot be replicated today,” noting its importance to utilities, LNG exporters, and the data center sector.
This deal deepens ArcLight’s partnership with Kinder Morgan and adds to its long-standing investment in North American gas and electric infrastructure. Since 2001, ArcLight has managed over 65 GW of energy assets and 47,000 miles of transmission infrastructure.
Transaction terms were not disclosed. Barclays advised ArcLight, and Latham & Watkins served as legal counsel.
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