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Kinder Morgan closes $310 million acquisition of Kinetrex Energy

Kinder Morgan

Kinder Morgan, one of the largest energy infrastructure companies in North America, announced this Friday it has closed its previously announced acquisition of Kinetrex Energy; a leading liquified natural gas company.

Firstly, the acquisition has a total enterprise value of $310 million; it includes two small-scale, domestic LNG production and fueling facilities; and a 50% interest in a landfill-based renewable natural gas (RNG) facility in Indiana.

Secondly, the acquisition also comes with signed commercial agreements for three additional RNG facilities; which construction will begin shortly.

Thirdly, Kinetrex is the leading supplier of liquefied natural gas (LNG) in the Midwest; it is a rapidly growing player in producing and supplying RNG under long-term contracts to transportation service providers.

Conseqeuntly, the acquisition by Kinder Morgan will position the company in a privileged spot to boost its solutions onto new markets. In fact, the company will continue operations as Kinetrex Energy, but as a Kinder Morgan company.

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Kinder Morgan to boost its solutions portfolio after acquisition

Moreover, about the importance of the acquisition, Kinder Morgan’s Energy Transition Ventures President, Jesse Areniva, said. “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 also confident that additional RNG opportunities will continue to emerge in the near term and deliver attractive returns to our shareholders.”

On the other hand, the acquisition was announced back in July; as we reported previously, it was done from an affiliate of Parallel49 Equity.

Furthermore, Kinetrex has a 50% interest in the largest RNG facility in Indiana; as well as signed commercial agreements to begin construction for the three additional landfill-based RNG facilities; mentioned above.

In addition, once completed, those facilities will have a total capacity of over four billion cubic feet of RNG. The RNG produced by Kinetrex Energy derives from abundant renewable sources; including organic waste in landfills, also, wastewater treatment plants and agricultural operations. Kinetrex captures methane produced from the decomposition of organic waste, reducing substantially the GHG emissions on the gas.

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