Brookfield Infrastructure Partners and Kinder Morgan have agreed to jointly sell a 25 percent stake in Natural Gas Pipeline Company of America (NGPL) to a fund managed by ArcLight Capital Partners for $830 million.
NGPL is the largest transporter of natural gas into the Chicago-area market and is one of the largest interstate pipeline systems in the country. It is also a major transporter of natural gas to large LNG export facilities and other markets located on the Texas and Louisiana Gulf Coast.
Based on the price of the minority stake, NGPL has an implied enterprise value of $5.2 billion, according to Brookfield.
Following the transaction, Kinder Morgan and Brookfield Infrastructure will each hold a 37.5 percent interest in NGPL, and Kinder Morgan will continue to operate the pipeline. The proceeds of the sale will be shared equally between the two companies.
“Kinder Morgan and Brookfield Infrastructure are pleased to welcome ArcLight into the NGPL j
