Kinder Morgan to Convert Louisiana Facility for Renewable Fuels

Kinder Morgan Inc. recently announced plans to convert a portion of an existing crude-oriented facility in Louisiana into a renewable feedstock storage hub, which analysts say will bolster Kinder Morgan’s energy transition push.

The Houston-based pipeline operator has made strides so far this year in the energy transition space including its entry into renewable natural gas (RNG) through a $310 million acquisition of Indianapolis-based Kinetrex Energy, which Kinder Morgan closed last month.

“While likely not a major equity needle-mover in isolation, we see the announcement as an attractive opportunity for KMI to broaden its energy transition product offering alongside the prior acquisition of RNG/LNG producer Kinetrex earlier this year without deviating from the company’s terminal and pipeline wheelhouse,” analysts with Tudor, Pickering, Holt & Co. (TPH) wrote in a Sept. 14 research note.