ARCLIGHT ACQUIRES INTEREST IN NATURAL GAS PIPELINE COMPANY OF AMERICA, ONE OF THE LARGEST NATURAL GAS INFRASTRUCTURE ASSETS IN NORTH AMERICA

PR Newswire

Tue, May 13, 2025, 7:00 AM 4 min read

BOSTON, May 13, 2025 /PRNewswire/ -- ArcLight Capital Partners, LLC announced its managed fund (collectively, "ArcLight") has acquired a 25% interest in Natural Gas Pipeline Company of America ("NGPL"), a strategic natural gas infrastructure system. As a result of the transaction, ArcLight will become the largest owner of NGPL with a 62.5% economic ownership interest, alongside its strategic partner Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan continues to own a 37.5% economic interest and operates NGPL.

NGPL is one of the largest interstate pipeline systems in the country, spanning nine states, supplying critical power and heating markets across its footprint and liquefied natural gas facilities in Texas and Louisiana. With ~9,100 miles of pipeline, compressor stations totaling ~1 million horsepower, and 288 billion cubic feet of storage, NGPL provides critical energy, access, reliability and supply from all major U.S. natural gas basins.

"The U.S. is seeing historic levels of power demand growth, from both electrification and AI, which we believe will continue well into the next decade. Critical infrastructure assets like NGPL will be increasingly necessary to providing both reliability and the ability to help meet the growing infrastructure needs associated with these two investment mega trends," said Dan Revers, Founder of ArcLight. "This acquisition builds on ArcLight's deep history, dating back to 2001, of investing in critical gas infrastructure."

"We believe NGPL represents a strategic natural gas infrastructure asset that cannot be replicated today and that has significant opportunities to help utilities, LNG exporters, data center developers and hyper scalers meet their growing gas infrastructure needs," said Lucius Taylor, Partner at ArcLight. "This continued investment in NGPL also reflects ArcLight's ability to be a value-added partner and expands our strategic partnership with Kinder Morgan."

Since 2001, ArcLight has owned, controlled, or operated over ~65 GW of assets and 47,000 miles of electric and gas transmission infrastructure with $80bn of enterprise value. With its deep industry experience and suite of internal operational and technical resources, ArcLight believes it is well positioned to deliver the electric infrastructure solutions required by AI and data center power demand. Today, ArcLight manages one of the largest private power infrastructure portfolios in North America.

Terms of the transaction were not disclosed. 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 $80bn of enterprise value. ArcLight has a long and proven history 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.

About Kinder Morgan:
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 79,000 miles of pipelines, 139 terminals, more than 700 Bcf of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.9 Bcf per year. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO₂, renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks. Learn more about our work advancing energy solutions on the lower carbon initiatives page at www.kindermorgan.com.