ArcLight Capital Partners has finalized the acquisition of a 25% equity interest in the Natural Gas Pipeline Company of America (NGPL) from Brookfield Infrastructure, bringing ArcLight’s total ownership in the system to 62.5%. The transaction, which reflects a total enterprise value of $1.7 billion, marks Brookfield’s complete exit from NGPL and positions ArcLight as the pipeline system’s largest stakeholder. Kinder Morgan retains its 37.5% economic interest and continues to operate the network.
Spanning 9,100 miles across nine U.S. states, NGPL is one of the nation's largest natural gas transportation systems. Its infrastructure includes 1 million horsepower of compression capacity and 288 billion cubic feet (Bcf) of storage. The system delivers natural gas to major demand hubs including the Chicago area, and services LNG export markets in Texas and Louisiana.
ArcLight sees the acquisition as a long-term strategic investment. “NGPL is a critical infrastructure asset that cannot be replicated today,” said Lucius Taylor, Partner at ArcLight. Dan Revers, ArcLight’s founder, added that the U.S. is facing “historic levels of power demand growth driven by electrification and AI,” and that assets like NGPL will be essential for meeting those needs.
This transaction aligns with ArcLight’s focus on perpetual capital deployment in energy infrastructure. With over $60 billion in assets under management, ArcLight manages one of the largest private portfolios in the North American power sector.
Kinder Morgan, the operator of NGPL, is concurrently advancing a $72 million expansion project on the system. Approved by the Federal Energy Regulatory Commission (FERC) in January, the upgrade will add 300 MMcf/d of capacity to support growing LNG export demand along the Gulf Coast.
The transaction was signed on March 21, 2025, and is expected to close in Q2 2025. Barclays Capital Inc. served as financial advisor and Latham & Watkins LLP as legal counsel to ArcLight. On Brookfield’s side, legal support was provided by Vinson & Elkins, with a team led by partner Benji Barron and senior associate Jordan Fossee.
Brookfield’s divestment is part of a broader asset monetization strategy targeting $5 to $6 billion in proceeds over the next two years. “We continue to experience strong activity and buyer interest in our capital recycling initiatives,” said CEO Sam Pollock.
