Kinder Morgan notes progress on energy transition
North American pipeline company Kinder Morgan said July 21 its foray into renewable natural gas (RNG) was the beginning of its journey along the energy transition pathway.
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.
Not counting that impairment, however, and Kinder Morgan said its adjusted earnings were $516mn for the quarter, up from the $381mn from the same period last year.
Earlier this month, the company paid $310mn to acquire Indianapolis-based Kinetrex, a supplier of LNG and an emerging player in RNG.
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.
“By capturing methane produced by decomposing organic waste that would otherwise be released into the atmosphere, the RNG production process reduces or even eliminates greenhouse gas emissions,” Kinder Morgan president Kim Dang said. “We are confident that this is only the first of many opportunities that the team will find in the ongoing energy transition.”
Once all are in service next year, the RNG production is estimated at more than 4bn ft3/yr.