ArcLight Capital Partner and its affiliates have paid $857 million for a wholly owned subsidiary of Targa Resources Corp.
The subsidiary owns a 25 percent equity interest in Gulf Coast Express Pipeline (GCX), a premier, natural-gas pipeline providing critical residue gas takeaway service from the Permian Basin to key U.S. Gulf Coast end-markets, including key emerging demand regions.
GCX is operated by Kinder Morgan Inc. and is underpinned by a diverse array of shippers under long-term, committed contracts.
“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.”