SEATTLE (Oil Monster): In a $865 million transaction, ArcLight Capital Partners stated that it had purchased a 25% equity stake in the Gulf Coast Express Pipeline (GCX) from a Phillips 66 affiliate. As a result of the agreement, ArcLight and Kinder Morgan companies will now jointly own GNX. Kinder Morgan's subsidiary will oversee the pipeline's operations.
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ArcLight's standing as one of the biggest private owners of natural gas transmission infrastructure will be further enhanced by the acquisition. Additionally, it will assist the business in growing its collaboration with Kinder Morgan. ArcLight has been in the energy infrastructure business for over 20 years and owns, manages, or runs over 47,000 miles of gas and electric transmission infrastructure.
"The acquisition will build on ArcLight's long history of investing in critical gas infrastructure," said Dan Revers, the company's founder. He stated that in order to meet the fast increasing demand in the United States, more infrastructure related to natural gas will be needed.
The GCX is a natural gas pipeline that is 804.6 kilometers long and has a daily capacity of about 2 billion cubic feet (bcf/d). It delivers gas to important US Gulf Coast markets from the Permian Basin.
The financial adviser to ArcLight for the transaction was Barclays Capital, whereas Latham & Watkins served as the legal adviser.