NGPL pipeline system : Kinder Morgan, Brookfield Infrastructure to sell 25% stake to ArcLight Capital for $830m

Kinder Morgan (KMI) and Brookfield Infrastructure Partners have jointly signed a deal worth $830 million to divest a stake of 25% in the NGPL pipeline system in the US to a fund controlled by ArcLight Capital Partners.

The deal values 100% of the natural gas pipeline system at approximately $5.2 billion.

NGPL, which is owned by Natural Gas Pipeline Company of America, is a 9,100 miles long pipeline system that delivers natural gas into the Chicago-area market sourced from the Permian Basin in Texas and the Gulf of Mexico.

Besides, the NGPL pipeline also caters to the LNG export facilities and other markets on the Texas and Louisiana Gulf Coast.

Kinder Morgan, Brookfield Infrastructure to sell 25% stake in NGPL pipeline system to ArcLight Capital for $830m

The pipeline system, which is operated by Kinder Morgan, has over a million compression horsepower and working natural gas storage of 288 billion cubic feet (Bcf).

It offers access to all the significant natural gas supply basins to its customers either directly or through the various interconnects it has with intrastate and interstate pipeline systems.

Kinder Morgan and Brookfield Infrastructure Partners will equally share the proceeds from the sale and will each hold a 37.5% stake in the NGPL gas pipeline system.

Tom Martin – Kinder Morgan Natural Gas Pipelines President said: “Kinder Morgan and Brookfield Infrastructure are pleased to welcome ArcLight into the NGPL joint venture.

“We believe this investment shows the value of natural gas infrastructure both today and in the decades to come.”

The transaction is expected to be closed in the first quarter of this year.