US energy company Kinder Morgan has finalized the previously announced acquisition of compatriot small-scale LNG player Kinetrex for about $310 million.
Kinder Morgan, the operator of the Elba Island liquefaction facility in Georgia, confirmed in a statement on Friday it had closed the deal. The firm bought Kinetrex from an affiliate of Parallel49 Equity.
The acquisition includes two small-scale, domestic LNG production and fueling facilities, a 50% interest in a landfill renewable natural gas (RNG) facility, and three additional RNG facilities with signed commercial arrangements, according to Kinder Morgan.
Kinetrex supplies LNG in the Midwest but it also produces and supplies RNG under long-term contracts to transportation service providers.
The firm 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, total annual RNG production from the four sites would reach over four billion cubic feet.
Kinetrex produces RNG from renewable sources, including organic waste in landfills, wastewater treatment plants and agricultural operations.
The company will continue operations as Kinetrex, a Kinder Morgan company.
