Ares Management Corporation (NYSE: ARES) has announced that funds managed by its Infrastructure Opportunities strategy have acquired a 32.4% stake in the Rover Pipeline from Blackstone Energy Transition Partners. The transaction underscores the intensifying demand for large-scale energy infrastructure capable of supporting North America’s rapidly evolving power needs.
The Rover Pipeline is a critical 700-mile natural gas transmission system spanning Pennsylvania, West Virginia, Ohio, and Michigan. With a capacity of 3.425 billion cubic feet per day (Bcf/d), the asset provides essential connectivity from the Appalachian Basin—the largest natural gas-producing region in the United States—to high-value markets across North America. The pipeline is operated by an affiliate of Energy Transfer LP and is largely secured under long-term contracts.
Blackstone originally acquired its interest in 2017 to support the development and completion of the project, which went into service in 2018.
The acquisition aligns with Ares’ strategy to invest in infrastructure that sits at the intersection of three major market shifts: the unprecedented surge in U.S. power demand, the rising global requirement for American liquefied natural gas (LNG), and the reshoring of domestic manufacturing.
“Large-scale, strategically located assets like Rover, which offer much-needed egress for in-basin supply, are playing a central role in the natural gas value chain,” said Anthony Omokha, Managing Director in Ares Infrastructure Opportunities. “We believe that Rover is well positioned to deliver value over the long term.”
For Blackstone, the sale marks the conclusion of a successful investment cycle in a key midstream asset. David Foley, Global Head of Blackstone Energy Transition Partners, noted the increasing importance of such infrastructure as electrification and AI-related power generation continue to drive domestic gas consumption.
“We are proud to have supported the development and construction of Rover, which delivers affordable, reliable, American natural gas to key Midwestern markets,” Foley said.
Ares was represented by legal counsel Kirkland & Ellis. Blackstone’s financial advisors for the deal were RBC Capital Markets and Greenhill & Co. (a Mizuho affiliate), with Vinson & Elkins serving as legal counsel.
