ArcLight Acquires 25% Stake in Gulf Coast Express Pipeline for $865 Million
- Editor
- Feb 3
- 2 min read
What's Happening: ArcLight Capital Partners has completed the acquisition of a 25% equity interest in Gulf Coast Express Pipeline LLC (GCX) for $865 million from an affiliate of Phillips 66. GCX will now be jointly owned by subsidiaries of Kinder Morgan, Inc. and ArcLight, with Kinder Morgan continuing to operate the pipeline.
The Key Moves:
ArcLight acquires 25% stake in GCX, a 500-mile natural gas pipeline with 2 Bcf/d capacity.
GCX provides critical gas takeaway service from Permian Basin to US Gulf Coast markets.
ArcLight expands its strategic partnership with Kinder Morgan through this acquisition.
By The Numbers :
ArcLight pays $865 million for the 25% equity interest in GCX.
GCX has approximately 2 Bcf/d of capacity.
Since 2001, ArcLight has owned, controlled, or operated over 47,000 miles of electric and gas transmission.
Key Quotes:
"This acquisition builds on our history dating back to 2001 of investing in critical gas infrastructure," said Dan Revers, Founder of ArcLight.
"We believe GCX represents a critical-path, strategic natural gas infrastructure asset with opportunities for growth," said Lucius Taylor, Partner at ArcLight.
"As one of the largest, lowest cost transmission assets in the region, we believe GCX is well positioned to capitalize on the dual tailwinds of growing Permian production and long-term LNG, power, and industrial demand growth."
The Bottom Line: ArcLight's acquisition of a significant stake in GCX strengthens its position in the natural gas infrastructure sector, aligning with growing energy demands and the need for reliable transmission assets. This move expands ArcLight's portfolio and deepens its partnership with Kinder Morgan, positioning the fund to capitalize on future growth opportunities in the Permian Basin and Gulf Coast markets.
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