Blackstone Credit & Insurance (BXCI) is committing $3.5bn to a joint venture with EQT Corporation, acquiring a non-controlling equity stake in key natural gas infrastructure assets valued at $8.8bn, according to a report by Alternatives Watch.
The agreement grants Blackstone exposure to critical midstream assets, including the Mountain Valley Pipeline and the Hammerhead Pipeline system, which collectively transport up to 1.6 billion cubic feet of natural gas daily from Pennsylvania and West Virginia to major transmission lines.
“These vital midstream assets are well-positioned to benefit from increasing demand for natural gas,” said Rick Campbell, managing director at BXCI. “Blackstone’s scale and expertise in this sector have enabled us to create a compelling opportunity for both EQT and our investors.”
Robert Horn, global head of Infrastructure & Asset-Based Credit at BXCI, emphasised the strategic importance of the venture, stating that it reflects Blackstone’s commitment to offering “large-scale, flexible capital solutions to leading corporations worldwide.”
BXCI saw a 22% rise in inflows, reaching $21.4bn in the third quarter of 2024. The division now manages $355bn in assets, making it Blackstone’s largest business line.
The joint venture is valued at approximately 12 times projected EBITDA for 2025–2029. EQT will retain control over its infrastructure and maintain rights to pursue growth projects, including planned expansions of the Mountain Valley Pipeline.
The partnership provides EQT with critical funding to reduce net debt, which the company anticipates lowering to approximately $9bn by the end of 2024, bolstering its financial flexibility.
The transaction is expected to close in the fourth quarter of 2024, pending regulatory approvals.
Citi acted as Blackstone’s financial advisor, with Milbank providing legal counsel, while RBC Capital Markets advised EQT, supported by legal counsel from Kirkland & Ellis.
