LNG

Kinetrex Energy, a company acquired by US pipeline giant and LNG stakeholder Kinder Morgan Inc., has started the construction of three renewable natural gas production facilities to make RNG from waste in the state of Indiana.

The three sites are located at the Twin Bridges Landfill in Danville, the Prairie View Landfill in Wyatt and the Liberty Landfill in Monticello.

Upon completion, they are expected to produce a total of 3.5 billion cubic feet each year of RNG, derived from sources such as organic waste in landfills, wastewater treatment plants and agricultural operations.

By capturing methane produced from the decomposition of organic waste, the RNG production process also reduces or eliminates greenhouse gas emissions.

Kinder Morgan said commercial operations are expected to begin in the fall of 2022, pending required permits and certifications.

The Kinder Morgan Kinetrex unit expects to invest $146 million to construct the RNG facilities, which it will operate to process gas purchased from Wabash Valley Power Alliance (WVPA) Waste Management, owner of the landfills.

WVPA is a not-for-profit electric generation and transmission cooperative based in Indianapolis.

The G&T provides wholesale electricity to 23 retail electric distribution cooperatives in Indiana, Illinois and Missouri.

Collectively, these cooperatives supply electricity to more than 321,000 homes, schools, farms and businesses.

Kinetrex, also based in Indianapolis and which was an affiliate of the Parallel 49 equity fund before being acquired by Kinder Morgan in July 2021, also has an interest in the largest RNG facility in Indiana.

“Once operational next year, total annual RNG production from the for sites is estimated to be over four billion cubic feet,” said KMI.

Assets growth

Houston, Texas-based KMI, which owns an interest in or operates 83,000 miles of US pipelines carrying natural gas oil and other products and 144 terminals, is now participating in what will be a small but very “green” part of its business.

KMI’s US pipeline and storage assets are spread throughout the US and the company is a key supplier of LNG feed gas to exporters of clean energy to Asia as well as being a main stakeholder in the Elba Island LNG export plant in Georgia.

KMI’s Indiana RNG will be sold pursuant to long-term contracts to Kinetrex’s vehicle transportation customers located throughout the eastern half of the US.

“We are pleased to join WVPA, which has a long history in the landfill gas space, on this initiative to bring additional renewable fuels and low-carbon solutions to the marketplace,” said Aaron Johnson, KMI President of Renewable Natural Gas.

“We expect these facilities will produce renewable fuels that will ultimately replace approximately 28 million gallons of traditional diesel each year, lowering GHG emissions by about 280,000 tons,” added Johnson.

“The opportunity to work with Kinetrex has truly created a win-win for our membership,” said WVP Alliance Executive Vice President of Engineering and Operations Brian Fitzgerald.

“As a result of this project, Kinetrex becomes a cooperative member and WVPA’s involvement affords the production of alternative energy resources that will benefit our environment,” added Fitzgerald.

The US Elba Island LNG export plant in the state of Georgia has become the sixth US export facility to come on stream after the US Federal Energy Regulatory Commission gave owner Kinder Morgan permission to place the first liquefaction Train into service.