ArcLight Capital Partners has acquired a 25 percent equity interest in Gulf Coast Express Pipeline (GCX), a premier, 500-mile natural gas pipeline, for $865 million from an affiliate of Phillips 66.
GCX provides critical residue gas takeaway service from the Permian Basin to key U.S. Gulf Coast end markets, including key growing demand regions such as the growing LNG export market in South Texas. GCX has approximately 2 billion cubic feet per day of capacity, underpinned by a high-quality array of shippers under long-term committed contracts.
Since 2001, ArcLight has owned, controlled or operated more than 47,000 miles of electric and gas transmission, making it one of the largest private owners of natural gas–related transmission infrastructure. Following the transaction, GCX will be jointly owned by subsidiaries of Kinder Morgan and affiliates of ArcLight. GCX will continue to be operated by a subsidiary of KMI.
“As the U.S. seeks to meet the rapidly growi