Kinder Morgan to acquire Kinetrex Energy
Kinetrex has a 50% interest in the largest RNG facility in Indiana, as well as signed commercial agreements to begin construction on three additional landfill-based RNG facilities. Once operational next year, the total annual RNG production from the four sites is estimated to be over 4 billion cubic feet.
“This is a great day in the young history of Kinder Morgan Energy Transition Ventures (ETV),” said Jesse Arenivas, ETV president.
“We have been focused 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 and we are excited to welcome them to Kinder Morgan.”
Aaron Johnson, Kinetrex president and CEO, added: “As we looked for the best partner to help grow our presence in RNG, Kinder Morgan’s ETV emerged as the clear choice.
“Kinder Morgan’s 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.”
Key members of Kinetrex’s management team will join Kinder Morgan as part of the acquisition to pursue new projects that expand their successful RNG platform. After close, Johnson will continue with Kinder Morgan as president of RNG and will support Arenivas.
The transaction requires regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and is expected to close in the third quarter of this year.