ArcLight Capital Partners completed its $865 million acquisition of a 25% stake in the Gulf Coast Express (GCX) natural gas pipeline from Phillips 66. (Source: Shutterstock, ArcLight Capital Partners)
ArcLight Capital Partners finished its $865 million acquisition of a 25% stake in the Gulf Coast Express (GCX) natural gas pipeline, the company announced Feb. 3.
The 25% stake in the line formerly belonged to Phillips 66. ArcLight affiliates and Kinder Morgan (KMI) subsidiaries now own the asset. KMI will continue to operate the line.
Kinder Morgan announced in October 2024 that it would increase the line’s capacity by 570 MMcf/d. GCX is a 500-mile line that currently carries up to 2 Bcf/d of natural gas from the Permian Basin to the Agua Dulce area close to Corpus Christi in South Texas.
"As one of the largest, lowest cost transmission assets in the region, we believe GCX is well positioned to capitalize on the dual tailwinds of growing Permian production and long-term LNG, power, and industrial demand growth," said Lucius Taylor, partner at ArcLight.
After agreeing to the deal with ArcLight in December 2024, Phillips 66 has focused on integrating its NGL footprint, buying EPIC’s NGL assets in January for $2.2 billion.
Recommended Reading
E&P Highlights: Jan. 27, 2025
2025-01-27 - Here’s a roundup of the latest E&P headlines including new drilling in the eastern Mediterranean and new contracts in Australia.
DNO Makes Another Norwegian North Sea Discovery
2024-12-17 - DNO ASA estimated gross recoverable resources in the range of 2 million to 13 million barrels of oil equivalent at its discovery on the Ringand prospect in the North Sea.
Wildcatting is Back: The New Lower 48 Oil Plays
2024-12-15 - Operators wanting to grow oil inventory organically are finding promising potential as modern drilling and completion costs have dropped while adding inventory via M&A is increasingly costly.
DNO Discovers Oil in New Play Offshore Norway
2024-12-02 - DNO ASA estimated gross recoverable resources in the range of 27 MMboe to 57 MMboe.
Freshly Public New Era Touts Net-Zero NatGas Permian Data Centers
2024-12-11 - New Era Helium and Sharon AI have signed a letter of intent for a joint venture to develop and operate a 250-megawatt data center in the Permian Basin.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.