Kinder closes takeover of RNG firm Kinetrex
US energy company Kinder Morgan announced August 20 it had closed the $310mn acquisition of renewable natural gas (RNG) producer Kinetrex, saying the move was certain to return value to shareholders.
Kinder’s acquisition of Kinetrex includes two small-scale LNG production and fuelling facilities, a 50% stake in a landfill-based RNG facility and agreements to start construction on three other similar facilities in the future.
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Kinder described Kinetrex as a supply leader in LNG and an emerging player in the RNG space. Developers describe the capture of methane emitted from the decomposition of waste in landfills as a renewable form of energy.
“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, Kinder’s president of energy transition ventures. “We’re confident that additional RNG opportunities will continue to emerge in the near term and deliver attractive returns to our shareholders.”
Kinder in July said it was acquiring Kinetrex from an affiliate of Parallel49 Equity. Once all of the RNG facilities in the portfolio of Kinetrex are in service next year, its RNG production is estimated to exceed 4bn ft3/yr.
Kinder Morgan reported a net loss of $757mn during the second quarter, $120mn more than its loss during the same period last year. The company attributed the loss to impairments from lower delivery volumes and lower rates on contract renewals for its natural-gas processing and gathering assets in Texas.