ArcLight Announces $865 Million Acquisition of Strategic Pipeline Interest

Core Viewpoint - ArcLight Capital Partners has acquired a 25% equity interest in Gulf Coast Express Pipeline for $865 million, enhancing its strategic partnership with Kinder Morgan and expanding its natural gas infrastructure portfolio [1][4]. Company Overview - ArcLight has a history of owning, controlling, or operating over 47,000 miles of electric and gas transmission infrastructure since 2001, making it one of the largest private owners in this sector [3][6]. - The company has managed approximately 65 GW of assets and$80 billion in enterprise value, focusing on critical electrification infrastructure [6]. Industry Context - Gulf Coast Express Pipeline is a 500-mile natural gas pipeline with a capacity of approximately 2 Bcf/d, serving key markets including the growing LNG export market in South Texas [2]. - The acquisition is positioned to leverage the increasing demand for natural gas driven by rising production in the Permian Basin and long-term growth in LNG, power, and industrial sectors [5]. Strategic Importance - The acquisition is seen as a critical-path asset that will support the growing power demand associated with AI and data center infrastructure, indicating a need for more natural gas-related infrastructure [4][5]. - ArcLight's operationally intensive investment approach, supported by a dedicated team, positions the company to capitalize on these growth opportunities in the natural gas sector [6].