BOSTON, May 17, 2022 /PRNewswire/ -- ArcLight Capital Partners, LLC and affiliates (collectively, "ArcLight") announced today that it has completed the acquisition of a wholly-owned subsidiary of Targa Resources Corp. (NYSE: TRGP) ("Targa") that owns a 25% equity interest in Gulf Coast Express Pipeline ("GCX") for $857 million.
GCX is a premier, natural gas pipeline with 2.02 Bcf/d of capacity that is underpinned by a diverse array of shippers under long-term, committed contracts. GCX is operated by Kinder Morgan Inc. and provides critical residue gas takeaway service from the Permian Basin to key US Gulf Coast end-markets, including key emerging demand regions such as the growing liquefied natural gas ("LNG") export market in South Texas.
"ArcLight is pleased to acquire newly constructed, critical-path midstream infrastructure to assist continued energy transition efforts," said Lucius Taylor, Managing Director at ArcLight. "We strongly believe that, alongside our operating partners, GCX will continue to help supply growing global gas demand by bringing responsibly-sourced Permian Basin natural gas production to key demand markets as we transition to a clean and secure energy future."
Macquarie Capital (USA) Inc. acted as financial advisor and Latham & Watkins LLP acted as legal counsel to ArcLight on the transaction.
ArcLight is a leading private equity firm focused on energy, infrastructure and energy transition with a successful long-term track record. Founded in 2001, the firm helped pioneer an asset-based approach to investing across the power, renewables, infrastructure and broader energy value chain. Since then, ArcLight has invested approximately $26 billion in 116 transactions, including over $10 billion of equity capital into the electrification segment, which includes power, transmission, renewable infrastructure and energy transition investments. Through its large infrastructure portfolio, ArcLight is focused on providing decarbonizing energy solutions with a strong ESG focus. Based in Boston, the firm's investment team employs a value-added investment approach that benefits from its dedicated in-house technical, operational, and commercial specialists and partners, as well as the firm's approximately 1,500-person asset management affiliate. More information about ArcLight can be found at www.arclight.com.
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SOURCE ArcLight Capital Partners