BOSTON, Feb. 3, 2025
/PRNewswire/ -- ArcLight Capital Partners, LLC and affiliates
(collectively, "ArcLight") announced today that it has completed
the acquisition of a 25% equity interest in Gulf Coast Express
Pipeline LLC ("GCX") for $865 million
from an affiliate of Phillips 66 (NYSE: PSX). Going forward,
GCX will be jointly owned by subsidiaries of Kinder Morgan, Inc. (NYSE: KMI) and affiliates
of ArcLight. GCX will continue to be operated by a subsidiary of
KMI.
GCX is a premier, 500-mile natural gas pipeline with
approximately 2 Bcf/d of capacity that is underpinned by a
high-quality array of shippers under long-term committed contracts.
GCX provides critical residue gas takeaway service from the Permian
Basin to key US Gulf Coast end-markets, including key growing
demand regions such as the growing liquefied natural gas ("LNG")
export market in South Texas.
Since 2001, ArcLight has owned, controlled, or operated over
47,000 miles of electric and gas transmission, making it one of the
largest private owners of natural gas related transmission
infrastructure.
"As the U.S. seeks to meet the rapidly growing power demand
needs associated with AI and data center infrastructure, we believe
more natural gas related infrastructure, both power and midstream
assets, will be needed to meet this objective. This
acquisition builds on our history dating back to 2001 of investing
in critical gas infrastructure, ability to be a value-added
partner, and expands our strategic partnership with Kinder Morgan," said Dan Revers, Founder of
ArcLight.
"We believe GCX represents a critical-path, strategic natural
gas infrastructure asset with opportunities for growth," said
Lucius Taylor, Partner at ArcLight.
"As one of the largest, lowest cost transmission assets in the
region, we believe GCX is well positioned to capitalize on the dual
tailwinds of growing Permian production and long-term LNG, power,
and industrial demand growth."
Barclays Capital Inc. acted as financial advisor and Latham
& Watkins LLP acted as legal counsel to ArcLight on the
transaction.
About ArcLight
ArcLight is a leading infrastructure
investor which has been investing in critical electrification
infrastructure since its founding in 2001. ArcLight has
owned, controlled or operated over ~65 GW of assets and 47,000
miles of electric and gas transmission and storage infrastructure
representing $80 billion of
enterprise value. ArcLight has a long and proven track record of
value-added investing across its core investment sectors including
power, hydro, solar, wind, battery storage, electric transmission
and natural gas transmission and storage infrastructure to support
the growing need for power, reliability, security, and
sustainability. ArcLight's team employs an operationally intensive
investment approach that benefits from its dedicated in-house
strategic, technical, operational, and commercial specialists, as
well as the firm's ~1,900-person asset management partner. For more
information, please visit www.arclight.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/arclight-announces-865-million-acquisition-of-strategic-pipeline-interest-302365746.html
SOURCE ArcLight Capital Partners
