Kinder Morgan Inc. has closed on its previously announced acquisition of Indianapolis-based Kinetrex Energy.
The company announced Aug. 20 that the $310 million acquisition includes two small-scale, domestic liquefied natural gas (LNG) production and fueling facilities, a 50 percent interest in a landfill-based renewable natural gas (RNG) facility in Indiana and signed commercial agreements for three additional RNG facilities with construction to begin shortly. Once operational next year, total annual RNG production from the four sites is estimated to be more than 4 billion cubic feet (Bcf).
Kinetrex is the leading supplier of LNG in the Midwest and a rapidly growing player in producing and supplying RNG under long-term contracts to transportation service providers. The company will continue operations as Kinetrex Energy, a Kinder Morgan company.
“We are very pleased to be adding Kinetrex Energy’s business to the full suite of energy solutions and services that Kinder Morgan has to offer customers,” said Jesse Arenivas, president of Kinder Morgan’s Energy Transition Ventures unit. “We’re confident that additional RNG opportunities will continue to emerge in the near term and deliver attractive returns to our shareholders.”
Kinder Morgan originally announced the deal on July 16, when the company agreed to acquire Kinetrex from an affiliate of Parallel49 Equity.
RNG is derived from abundant renewable sources, including organic waste in landfills, wastewater treatment plants and agricultural operations. By capturing methane produced from the decomposition of organic waste, the RNG production process reduces or eliminates greenhouse gas emissions.
Key members of Kinetrex’s management team will be joining Kinder Morgan as part of the acquisition to pursue new projects that expand their successful RNG platform. After close, Johnson will continue with Kinder Morgan as president of Renewable Natural Gas and will report to Arenivas. Since its inception in 2013, Kinetrex has been committed to developing solutions that lower the cost of business while maintaining a focus on environmental stewardship. This acquisition will stay true to that focus.Tags: Energy Transition, Kinder Morgan, Kinetrex Energy, LNG, Renewable Natural Gas (RNG)