Pipeline operator Kinder Morgan, Inc. announced today that it is to purchase Indianapolis-based Kinetrex Energy from an affiliate of Parallel49 Equity for $310 million to expand its renewable natural gas (RNG) platform.
Kinetrex, which supplies liquefied natural gas in the U.S. Midwest, has a 50% interest in the largest RNG facility in Indiana as well as commercial agreements to begin construction on three additional landfill-based RNG facilities, Kinder Morgan said on Friday.
‘This is a great day in the young history of Kinder Morgan Energy Transition Ventures (ETV),’ said ETV president Jesse Arenivas. ‘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.’