Kinder Morgan enters high growth RNG market with Kinetrex Energy acquisition
In the United States (US), Kinder Morgan, Inc. (KMI), one of the largest energy infrastructure companies in North America has recently announced that it has closed on its previously announced acquisition of Kinetrex Energy. The US$310 million deal includes two small-scale, domestic 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 in development.
Kinetrex Energy is a leading supplier of liquefied natural gas (LNG) in the Midwest and a rapidly growing player in producing and supplying RNG under long-term contracts to transportation service providers.
Acquired by Parallel49 Equity’s Fund V in December 2016, Kinetrex completed a significant expansion into landfill-based RNG production, transforming Kinetrex into a leading alternative energy company and helping its customers achieve carbon negative mandates as well as their environmental, social, and governance (ESG) objectives under Parallel49 ownership.
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. We’re confident that additional RNG opportunities will continue to emerge in the near term and deliver attractive returns to our shareholders, said Jesse Arenivas, President of Kinder Morgan Energy Transition Ventures.