Funds led by Ares Infrastructure Opportunities have acquired a 32.4% stake in the Rover Pipeline, the natural gas transmission line from the Appalachian Basin to Midwestern markets, from funds managed by Blackstone Energy Transition Partners, the firms announced on 29 April.
Why Ares Infrastructure Opportunities funds is buying Rover Pipeline (32.4% stake)
Ares managing director Anthony Omokha said Rover sat at the intersection of growing US power demand, rising global demand for American LNG and the reshoring of manufacturing. Blackstone's David Foley said assets such as Rover were increasingly important in connecting domestic supply with demand markets.
Deal terms and financing
Financial terms were not disclosed. Rover's 3.425 bcf/d of transportation capacity is substantially contracted under long-term agreements.
Market context
Blackstone acquired its interest in Rover in 2017 and supported its completion in 2018; the pipeline is operated by an affiliate of Energy Transfer. It spans about 700 miles across Pennsylvania, West Virginia, Ohio and Michigan.
