American Petroleum & CO2 Segment Overview
RNG Market Opportunity
KINDER MORGAN
U.S. RNG PRODUCTION bcfd
expect landfills to drive growth
3.0
0.6
0.4
1.0
1.6
2.3
3.6
2022 2025 2030
2035 2040
2045 2050
RNG DEMAND MARKETS
transportation market
RNG-based vehicles
emit up to 75% less
GHG emissions than
diesel vehicles(a)
Fleets with
decarbonization goals
may choose to
purchase RNG
Typically, prices near
traditional natural gas
price, like Henry Hub
for example:
$2.41/MMBtu HH
spot price
If RNG volumes are
consumed by fleets
in the transportation
market, then RIN
credits may be
earned, which are
then purchased by
RFS-obligated
parties (like refiners)
in order to comply
with federal
requirements:
$22.98/MMBtu D3
RIN value (b)
government program incentivizes RNG
production, provides margin for producer
voluntary market
Parties interested in
voluntarily decarbonizing
(like LDCs, utilities,
universities, industrial) are
increasingly interested in
RNG, despite the premium
price relative to traditional
natural gas
slimmer margin but fixed-
price, 10+ year contracts
EPA ERIN proposal beginning in 2024 provides additional
markets for RNG & landfill gas to electric projects
Sources: U.S. RNG production per WoodMackenzie, North America Gas Strategic Planning Outlook, March 2023. Includes all forms of RNG production.
a) Emissions data per the EPA.
b) $1.96 2023 D3 RIN price (per Argus) multiplied by 11.727 to convert to $/MMBtu. Pricing as of 4/28/2023.
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