Kinder Morgan buys Kinetrex Energy
North American infrastructure giant Kinder Morgan has bought US LNG supplier Kinetrex Energy from an affiliate of Parallel49 Equity.
As well as being the leading LNG supplied the US Midwest, Kinetrex has a 50% stake in the largest renewable natural gas (RNG) in Indiana, US. It has also signed commercial agreements to construct three further landfill-based RNG facilities. The total RNG production capacity of the four sites, when operational, will exceed 4 billion cubic feet annually. RNG is made from sources such as organic waste in landfills, wastewater treatment plants and agricultural operations.
‘We have been focussed on RNG due to its potential to grow rapidly in the near term and deliver attractive returns, with landfills providing a low cost, predictable and long-term feedstock. The team at Kinetrex has developed an outstanding business model and platform for future growth in a fragmented market,’ says Kinder Morgan Energy Transition Ventures (ETV) president Jesse Arenivas.
Kinetrex president and CEO Aaron Johnson will join Kinder Morgan as president of renewable natural gas. Other key members of the Kinetrex management team will also join Kinder Morgan to pursue new projects that expand their successful RNG platform.
‘As we looked for the best partner to help grow our presence in renewable natural gas, Kinder Morgan’s Energy Transition Ventures emerged as the clear choice. KMI’s project management expertise, extensive pipeline network and broad customer relationships will undoubtedly help us realise the vision we had in founding Kinetrex eight years ago: to provide holistic solutions for customers seeking to meet emission reduction targets,’ says Johnson.
Source: Tank Storage Magazine