Boston-based ArcLight Capital Partners said last week it acquired a 25 percent equity interest in Gulf Coast Express pipeline from an affiliate of Phillips 66 for $865 million. The pipeline now is owned by subsidiaries of Kinder Morgan and ArcLight, and Kinder Morgan will continue to operate the pipeline. The 500-mile natural gas pipeline has capacity of about 2 Bcfd and serves as a key outlet for Permian Basin natural gas.
Dan Rivers, founder of ArcLight, said Feb. 3, “As the U.S. seeks to meet the rapidly growing power demand needs associated with AI and data center infrastructure, we believe more natural gas-related infrastructure – both power and midstream assets – will be needed.” Lucius Taylor, ArcLight partner, called Gulf Coast Express a “critical-path, strategic natural gas infrastructure asset with opportunities for growth… 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.”
ArcLight has invested in more than 47,000 miles of electric and gas transmission since 2001 to make it one of the largest private owners of natural gas-related infrastructure.