Kinder Morgan acquires Kinetrex Energy

By Erin Voegele | August 24, 2021

Kinder Morgan Inc. on Aug. 20 closed its previously announced acquisition of Indianapolis-based Kinetrex Energy, a leading supplier of liquefied natural gas (LNG) in the Midwest and a growing player in the renewable natural gas (RNG) market, from an affiliate of Parallel49 Equity for $310 million.

Parallel49’s Fund V acquired Kinetrex in December 2016 and expanded the company into landfill-based RNG production. Kinder Morgan announced plans to acquire Kinetrex in July 2021.

According to Kinder Morgan, Kinetrex owns a 50 percent interest in the largest RNG facility in India and has also signed commercial agreements to begin construction on three additional landfill-gas RNG facilities. Once operational, the four sites are expected to produce more than 4 billion cubic feet of RNG annually. Construction on the three proposed RNG projects is expected to begin soon, with operations scheduled commence in 2022.

“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, president of energy transition ventures at Kinder Morgan. “We’re confident that additional RNG opportunities will continue to emerge in the near term and deliver attractive returns to our shareholders.”