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ArcLight Capital Partners, LLC has completed the acquisition of a 25% equity stake in Gulf Coast Express Pipeline LLC (GCX) from an affiliate of Phillips 66 for $865 million. Following the transaction, GCX is now co-owned by subsidiaries of Kinder Morgan Inc. (KMI) and ArcLight, with KMI continuing as the pipeline’s operator. The 500-mile GCX pipeline, with a 2 Bcf/d capacity, plays a key role in transporting residue gas from the Permian Basin to critical Gulf Coast markets, including South Texas LNG export facilities.
ArcLight emphasized that the acquisition aligns with its long-standing strategy of investing in critical energy infrastructure, having managed over 47,000 miles of electric and gas transmission since 2001. Dan Revers, Founder of ArcLight, noted that the increasing power demands from sectors like AI and data centers would drive the need for more natural gas infrastructure. He highlighted that this deal strengthens ArcLight’s strategic partnership with Kinder Morgan and reinforces its commitment to essential gas infrastructure. Meanwhile, Lucius Taylor, Partner at ArcLight, pointed out that GCX is a cost-efficient transmission asset well positioned to benefit from rising Permian Basin production and long-term growth in LNG, power, and industrial demand.
The transaction was advised by Barclays Capital Inc., with Latham & Watkins LLP providing legal counsel. ArcLight’s investment in power and midstream assets underscores its role as a key player in supporting U.S. energy needs, ensuring the continued development of reliable and efficient natural gas transportation infrastructure.
By : João Fernando
