ArcLight Completes Acquisition of a 25% Interest in the Gulf Coast Express Pipeline
ArcLight Capital Partners has successfully acquired a 25% equity interest in Gulf Coast Express Pipeline from Targa Resources for $857 million. The GCX pipeline, with a capacity of 2.02 Bcf/d, is essential for transporting natural gas from the Permian Basin to the Gulf Coast, fueling demand in emerging LNG markets. ArcLight's Managing Director, Lucius Taylor, expressed confidence in GCX’s role in meeting growing global gas demand responsibly as the energy sector transitions. Macquarie Capital served as the financial advisor for this transaction.
- Acquisition of a strategic 25% stake in Gulf Coast Express Pipeline for $857 million.
- GCX pipeline serves a critical role in natural gas transportation and market supply.
- Established long-term contracts underpinning the pipeline's capacity.
- None.
BOSTON, May 17, 2022 /PRNewswire/ -- ArcLight Capital Partners, LLC and affiliates (collectively, "ArcLight") announced today that it has completed the acquisition of a wholly-owned subsidiary of Targa Resources Corp. (NYSE: TRGP) ("Targa") that owns a
GCX is a premier, natural gas pipeline with 2.02 Bcf/d of capacity that is underpinned by a diverse array of shippers under long-term, committed contracts. GCX is operated by Kinder Morgan Inc. and provides critical residue gas takeaway service from the Permian Basin to key US Gulf Coast end-markets, including key emerging demand regions such as the growing liquefied natural gas ("LNG") export market in South Texas.
"ArcLight is pleased to acquire newly constructed, critical-path midstream infrastructure to assist continued energy transition efforts," said Lucius Taylor, Managing Director at ArcLight. "We strongly believe that, alongside our operating partners, GCX will continue to help supply growing global gas demand by bringing responsibly-sourced Permian Basin natural gas production to key demand markets as we transition to a clean and secure energy future."
Macquarie Capital (USA) Inc. acted as financial advisor and Latham & Watkins LLP acted as legal counsel to ArcLight on the transaction.
ArcLight is a leading private equity firm focused on energy, infrastructure and energy transition with a successful long-term track record. Founded in 2001, the firm helped pioneer an asset-based approach to investing across the power, renewables, infrastructure and broader energy value chain. Since then, ArcLight has invested approximately
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SOURCE ArcLight Capital Partners
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