Kinder Morgan buys LNG, RNG company
Kinder Morgan said July 16 it was acquiring Indianapolis-based Kinetrex, a supplier of liquefied natural gas and an emerging player in renewable natural gas.
For $310mn, Kinder said it was acquiring Kinetrex from an affiliate of Parallel49 Equity. Kinder said it was acquiring a company with a reputation as a leading supplier of LNG in the US Midwest. Kinetrex also has long-term contracts with transportation service providers for renewable natural gas (RNG).
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Methane from the decomposition of organic materials, often from landfills, is sourced for RNG. Kinetrex counts three landfill-based RNG facilities in the works and one in service in Indiana.
Once all are in service next year, the RNG production is estimated at more than 4bn ft3/yr.
Kinder in June said it would pay $1.2bn to acquire Stagecoach Gas Services, a consortium between Consolidated Edison and Crestwood Equity Partners with 185 miles of natural gas pipeline.
Stagecoach holds four natural gas storage facilities that have a combined working capacity of 41bn ft3.
Kinder in March formed a new unit, Energy Transition Ventures, meant to look for new opportunities in the energy transition.
The company reported Q1 net income at $1.41bn, compared with a year-ago loss of $306mn.