Page 12 - GLNG Week 29 2021

GLNG AMERICAS GLNG

Kinder Morgan to buy Kinetrex for $310mn

ENERGY PIPELINE operator Kinder Morgan announced produced from the decomposition of organic
TRANSITION last week that it had struck a deal to buy Kine- waste, the RNG production process reduces
trex Energy from an affiliate of Parallel49 Equity or eliminates greenhouse gas (GHG) emis-
for $310mn. Indianapolis-based Kinetrex is the sions. Thus this acquisition is in line with the
leading supplier of LNG in the US Midwest and broader trend of pipeline operators in the US
is also rapidly expanding in the renewable natu- and elsewhere taking steps to decarbonise their
ral gas (RNG) industry, Kinder Morgan stated. operations.
Kinetrex has a 50% interest in the largest Kinder Morgan formed an Energy Transition
RNG facility in Indiana and has signed com- Ventures (ETV) unit in March 2021 to identify
mercial agreements to begin construction on and pursue commercial opportunities emerging
three additional landfill-based RNG facilities, from the energy transition. It is this unit that is
according to the statement. Once these facili- involved in the Kinetrex acquisition.
ties are operational next year, Kinetrex’s total “This is a great day in the young history of
RNG production from the four sites is expected Kinder Morgan Energy Transition Ventures
to amount to more than 4bn cubic feet (113mn (ETV),” said ETV’s president, Jesse Arenivas.
cubic metres) per year. “We have been focused on RNG due to its poten-
The transaction will also include two small- tial to grow rapidly in the near term and deliver
scale LNG production and fuelling facilities. It is attractive returns, with landfills providing a low-
anticipated to close in the third quarter of 2021. cost, predictable and long-term feedstock. The
RNG is derived from renewable sources, team at Kinetrex has developed an outstanding
including organic waste in landfills, wastewater business model and platform for future growth
treatment plants and agricultural operations, in a fragmented market, and we are excited to
Kinder Morgan noted. By capturing methane welcome them to Kinder Morgan.”™

AUSTRAL ASIA

Chevron misses CCS target at Gorgon LNG

ENERGY SUPER-MAJOR Chevron confirmed this week it takes time to optimise a new system to ensure
TRANSITION that it would not meet its carbon dioxide (CO2) it performs reliably over 40-plus years of opera-
injection target at its Gorgon LNG facility, tion,” he continued. “The road hasn’t always been
which has a carbon capture and storage (CCS) smooth, but the challenges we’ve faced – and
component. overcome – make it easier for those who aspire
Under the terms of approval for the Gorgon to reduce their emissions through CCS.”
LNG project, Chevron and its partners were According to Hatfield, Chevron is commit-
required to capture 4mn tonnes per year (tpy) of ted to sharing the lessons it has learned from
emissions over the first five years of operation, or the Gorgon injection project with state and fed-
around 80% of total emissions over this period. eral governments, research institutes and other
However, Chevron said this week that only 5mn energy producers to assist with the deployment
tonnes of CO2 equivalent had been captured of CCS across Australia.
since the CCS system was started up in August However, the super-major has come under
2019. fire for missing its injection target, with envi-
Chevron nonetheless hailed this as a “signifi- ronmental groups calling for it to be heavily
cant milestone”, saying it represented the largest fined.
volume of injection achieved within this time Advocacy group Sustainable Energy Now
frame by any environmental CCS system of WA’s chair, Ian Porter, described the injection
comparable specifications. Chevron Australia’s shortfall as a “shocking failure of one of the
managing director, Mark Hatfield, attributed world’s largest engineering projects”.
the failure to meet the injection target to delays “I sincerely hope CCS does work one day.
in safely starting up the CCS system. Ultimately we need it. But until that time, it is
“Chevron is working with the WA [Western reckless and disingenuous for the industry to
Australia] regulator on making up the shortfall keep pretending that it can expand operations
and will report publicly on that later in the year,” and reach net zero,” he was quoted by the Guard-
Hatfield said. “Like any pioneering endeavour, ian as saying.™

P12 www. NEWSBASE .com Week 29 23•July•2021