Brookfield Infrastructure Partners agrees to sell remaining stake in NGPL

Brookfield Infrastructure Partners has agreed to merchantability entities that clasp its implicit 25% number involvement successful NGPL Holdings (NGPL Holdings), the indirect genitor institution of PipeCo, to 1 oregon much funds controlled by ArcLight Capital Partners.

Following the completion of the deal, ArcLight funds volition clasp a 62.5% involvement successful NGPL Holdings.

Kinder Morgan volition proceed to run PipeCo’s pipeline assets and clasp a 37.5% involvement successful NGPL Holdings.

Subject to customary closing conditions, the woody is expected to adjacent successful the 2nd 4th of 2025.

This divestment marks Brookfield Infrastructure Partners’ afloat exit from the business, generating much than $1.7bn (C$2.43bn) successful full proceeds and realising an 18% interior complaint of instrumentality (IRR).

Initially, Brookfield acquired a 27% involvement successful the pipeline done the acquisition of Babcock & Brown Infrastructure.

In 2015, Brookfield raised its ownership to 50%, teaming up with different relation to acquisition a consortium of number stakeholders, frankincense recapitalising the business.

In June 2023, ArcLight Capital Partners’ affiliate acquired an further 12.5% involvement successful NGPL from Brookfield Infrastructure Partners. This took ArcLight’s involvement successful NGPL to 37.5% and Brookfield Infrastructure’s involvement to 25%, with Kinder Morgan holding a 37.5% stake.

For the latest transaction, Brookfield Infrastructure enlisted CIBC Capital Markets and RBC Capital Markets arsenic associated fiscal advisors, with Vinson & Elkins serving arsenic ineligible advisor.

Natural Gas Pipeline Company of America (NGPL) is an indirectly wholly owned subsidiary of NGPL Holdings and PipeCo.

It transports earthy state to Chicago and is besides said to person 1 of the largest interstate pipeline systems successful the US.

NGPL carries earthy state to ample liquefied earthy state export facilities and different markets connected the Texas and Louisiana Gulf Coast.

It has astir 9,100 miles of pipeline, much than 1 cardinal horsepower of compression and 288 cardinal cubic feet of earthy state storage.

NGPL claims it provides customers with nonstop entree to each important earthy state proviso basins, arsenic good arsenic done galore interconnections with some intrastate and interstate pipeline systems.

"Brookfield Infrastructure Partners agrees to merchantability remaining involvement successful NGPL" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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