Carbon Pipeline Deal Points to Future of Energy Transport

$2bn pipeline deal signals rising investor interest in carbon-ready energy infrastructure

23 May 2025

A $2 billion pipeline sale could signal the start of a new era in energy infrastructure.

Five Point Infrastructure Partners is exploring the sale of Northwind Midstream, its natural gas transport network in the Permian Basin. On paper, it’s a midstream divestment. In practice, it’s a glimpse into how carbon transport may soon reshape the energy map.

Northwind doesn’t currently move captured carbon, but it’s built for that future. Its pipelines handle high-carbon natural gas, and its location in a region dense with emissions makes it a prime candidate for carbon capture and storage (CCS) retrofits.

Investors are paying attention. Private equity firms and major pipeline operators are reportedly circling, lured by the long-term potential of infrastructure that can support a lower-carbon economy. With federal incentives ramping up and decarbonization pressure mounting, pipelines that can carry CO₂ may soon be in higher demand than those that move oil or gas.

“This kind of asset is no longer just midstream,” one analyst said. “It’s the groundwork for the next phase of energy.”

The possible sale reflects a broader shift. Infrastructure funds are rethinking what counts as future-proof. A pipeline built for gas today could be a carbon corridor tomorrow.

If the deal closes, it could set off a wave of similar moves as firms reposition for the CCS buildout. Northwind, once a standard gas network, is now being recast as a critical link in the emerging carbon economy.

The carbon capture boom hasn’t fully arrived. But sales like this show the groundwork is quietly being laid.

In the new energy playbook, pipelines aren’t just for hydrocarbons anymore. They’re becoming lifelines in the push to manage and move carbon, and the race to control that network is already underway.