Kinder Morgan to Convert Louisiana Facility for Renewable Fuels

As part of its plans to retrofit the Louisiana terminal assets, Kinder Morgan formed a partnership with Neste, one of the leading providers of renewable and circular solutions.

Kinder Morgan to Convert Louisiana Facility for Renewable Fuels

Upon completion of the project, Kinder Morgan’s Harvey, Louisiana facility will serve as the primary hub where Neste will store a variety of raw materials. (Source: Kinder Morgan logo by T. Schneider / Shutterstock.com)

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.

Already have an account? Log In

Sign up for FREE access to view this article now!

Unlock Free Access

Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.