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.
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