Sovereign wealth funds back ArcLight gas project

The energy investor has teamed up with sovereign wealth funds CIC and GIC to invest in Enogex, an ArcLight joint venture with OGE Energy Corporation.

ArcLight Capital Partners and a co-investor group including China Investment Corporation, Government of Singapore Investment Corporation and John Hancock Financial services have committed over $1 billion to support ArcLight’s investment in midstream infrastructure company Enogex.

Enogex is a joint venture between OGE Energy Corporation and ArcLight that provides natural gas gathering, processing, pipeline transportation and storage services in the US. Of the more than $1 billion committed, ArcLight has already closed $518 million from the co-investor group, which also includes The Northwestern Mutual Life Insurance Company.

Enogex aims to benefit from the “continued development of the large unconventional natural gas resource plays now being actively pursued in the Mid-Continent and elsewhere,” said Robb Turner, co-founder and senior partner of ArcLight.

ArcLight had collected $596 million for its fifth energy fund targeting $2 billion as of 12 May, according to a fundraising disclosure filed with the US Securities and Exchange Commission.

In January, ArcLight sold 49.9 percent of its stake in five power plants to GIC and GE Energy Financial Services for an undisclosed sum. ArcLight said GE and GIC would each acquire 24.95 percent of the portfolio from an affiliate, and that its affiliate would retain 50.1 percent of its share in the natural gas-fired plants.