ArcLight Acquires an Incremental Interest in Natural Gas Pipeline Company of America LLC from Brookfield Infrastructure

Rhea-AI Summary

ArcLight Capital Partners acquires an additional 12.5% stake in Natural Gas Pipeline Company of America (NGPL) from Brookfield Infrastructure. ArcLight now holds a 37.5% interest, while Brookfield Infrastructure retains 25%. Kinder Morgan continues to operate the pipeline and holds a 37.5% interest.

Positive

• ArcLight's increased ownership in NGPL reflects their confidence in strategic natural gas infrastructure. NGPL is a major transporter of natural gas to high-demand markets, including Chicago and LNG export facilities. The investment strengthens ArcLight's partnership with Kinder Morgan, a leading operator with strong ESG credentials.

Negative

• None.

BOSTON, June 15, 2023 /PRNewswire/ -- An affiliate of ArcLight Capital Partners, LLC ("ArcLight") has acquired an incremental 12.5% interest in Natural Gas Pipeline Company of America LLC ("NGPL") from Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) ("Brookfield Infrastructure"). As a result of this transaction, ArcLight's ownership in NGPL increased to 37.5% while Brookfield Infrastructure retains a 25% interest. Kinder Morgan, Inc. (NYSE: KMI) continues to operate the pipeline and holds a 37.5% interest in NGPL.

"Our investment in NGPL continues to be highly representative of ArcLight's thesis in strategic natural gas infrastructure. NGPL provides critical energy reliability and security services to utilities, enables increasing electrification in the U.S. and supports the generational shift in supply-demand fundamentals driven by LNG export growth. In addition, we believe NGPL serves as a critical enabler to the future development of energy transition infrastructure. We are excited to further invest in our longstanding partnership with Kinder Morgan, a highly sophisticated operator with industry leading ESG credentials," said Lucius Taylor, Partner at ArcLight.

NGPL is the largest transporter of natural gas into the high-demand Chicago-area market as well as one of the largest interstate pipeline systems in the country. It is also a major transporter of natural gas to large liquefied natural gas ("LNG") export facilities and other markets located on the Texas and Louisiana Gulf Coast. NGPL has approximately 9,100 miles of pipeline, more than 1 million compression horsepower and 288 billion cubic feet (Bcf) of working natural gas storage. NGPL provides its customers access to all major natural gas supply basins directly and through its numerous interconnects with intrastate and interstate pipeline systems.

About ArcLight Capital Partners, LLC
ArcLight Capital Partners, LLC is an experienced, middle-market, value add infrastructure investment firm. Founded in 2001, ArcLight helped establish infrastructure as an asset class by pioneering an asset-based private equity approach to investing in infrastructure and has since built an experienced and successful investment platform. Based in Boston, ArcLight's investment team employs a value-added, operationally intensive investment approach that benefits from its dedicated in-house technical, operational, and commercial specialists and partners, as well as the firm's approximately 1,800-person asset management operational partner. More information about ArcLight can be found at www.arclight.com.

About Brookfield Infrastructure Partners L.P.
Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across North and South America, Asia Pacific and Europe. Brookfield Infrastructure is focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership, or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation. Further information is available at https://bip.brookfield.com.

Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Corporation, a global alternative asset manager with approximately $825 billion of assets under management. For more information, go to https://brookfield.com.

About Kinder Morgan, Inc. 
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of the people, communities and businesses we serve. We own an interest in or operate approximately 82,000 miles of pipelines, 140 terminals, and 700 billion cubic feet of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 2.2 Bcf per year of gross production with up to an additional 5.2 Bcf in development. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke.

 

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SOURCE ArcLight Capital Partners

FAQ

Who acquired an additional stake in NGPL?

ArcLight Capital Partners.

What is the ownership breakdown after the transaction?

ArcLight holds 37.5%, Brookfield Infrastructure retains 25%, and Kinder Morgan holds 37.5%.

What is NGPL's role in the natural gas industry?

NGPL is the largest transporter of natural gas into the Chicago-area market and a major transporter to LNG export facilities on the Gulf Coast.

What are the key features of NGPL's infrastructure?

NGPL has 9,100 miles of pipeline, 1 million compression horsepower, and 288 Bcf of working natural gas storage.

What is the significance of the investment for ArcLight?

The investment aligns with ArcLight's thesis in strategic natural gas infrastructure and strengthens their partnership with Kinder Morgan.