Gulf Coast Express Pipeline Secures ArcLight Investment in $865 Million Deal
Deal News | Feb 03, 2025 | Arclight
ArcLight Capital Partners, LLC concluded the acquisition of a 25% equity interest in Gulf Coast Express Pipeline LLC (GCX) for $865 million from an affiliate of Phillips 66. This strategic deal positions GCX, a 500-mile natural gas pipeline with a capacity of 2 Bcf/d, as a jointly-owned asset between ArcLight and subsidiaries of Kinder Morgan, Inc. The pipeline continues to be operated by a subsidiary of Kinder Morgan, targeting LNG export and industrial demand growth along the US Gulf Coast. This acquisition marks ArcLight's continued investment in critical natural gas infrastructure to meet rising power demands linked to AI and data center growth. Barclays Capital Inc. and Latham & Watkins LLP served as financial advisor and legal counsel, respectively. ArcLight is a significant player in gas and electric transmission infrastructure, holding ownership over 47,000 miles of such infrastructure.
Sectors
- Natural Gas Transmission
- Infrastructure Investment
Geography
- United States – The article centers on a transaction impacting the natural gas infrastructure within the United States, specifically revolving around the Gulf Coast region.
Industry
- Natural Gas Transmission – The article discusses the acquisition of equity interest in a natural gas pipeline, indicating involvement in the transmission of natural gas.
- Infrastructure Investment – ArcLight's investment strategy focuses heavily on infrastructure, particularly in gas transmission and related energy infrastructure.
Financials
- $865 million – The amount ArcLight paid to acquire a 25% equity interest in Gulf Coast Express Pipeline LLC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ArcLight Capital Partners, LLC | Buyer | Company | A leading infrastructure investor with extensive experience in electrification infrastructure and natural gas transmission. |
| Gulf Coast Express Pipeline LLC | Target Company | Company | A 500-mile natural gas pipeline providing key services in residue gas takeaway from the Permian Basin. |
| Phillips 66 | Seller | Company | An affiliate from which ArcLight acquired its 25% equity interest in the Gulf Coast Express Pipeline. |
| Kinder Morgan, Inc. | Co-owner | Company | A major owner of GCX alongside ArcLight, with subsidiaries operating the pipeline. |
| Barclays Capital Inc. | Financial Advisor | Company | Provided financial advisory services to ArcLight for this transaction. |
| Latham & Watkins LLP | Legal Advisor | Company | Served as legal counsel to ArcLight during the transaction. |
| Dan Revers | Founder | Person | Founder of ArcLight, provided strategic commentary on the acquisition. |
| Lucius Taylor | Partner | Person | Partner at ArcLight, highlighted the strategic value and growth potential of GCX. |