Boston-based private equity firm ArcLight may have just scored the investment deal of a lifetime. Reese Energy Consulting today is following the latest news from Houston-based Kinder Morgan and equity partner Brookfield Infrastructure Partners, which now have sold a 25% joint interest in Natural Gas Pipeline Company of America for $830 million. The enterprise value of that minority interest, however, is more in the neighborhood of $5.2 billion. NGPL not only ranks as the largest natural gas pipeline to serve high-demand Chicago-area markets, it’s also one of the largest in the nation at more than 9,100 miles. The system provides customer access to all major gas supply basins, interconnects with numerous intrastate and interstate systems, and offers 288 BCF of storage. Upon closing next month, KM and Brookfield each will retain a $37.5% interest in NGPL, and Kinder Morgan will continue to operate the pipeline. Boston-based ArcLight Capital Partners manages energy investments focused on midstream, power, and production infrastructure.
Founded in 2001, ArcLight helped pioneer an asset-based private equity approach to investing in the dynamic energy sector. They have invested approximately $23 billion in 110 transactions since inception, generating strong realized returns for their limited partners from 69 exits across diverse market cycles.