Two of Canada’s largest pipeline companies said on Wednesday, through their CEOs, that they see opportunities in their natural gas businesses as the energy transition evolves. Accordingly, TC Energy and Enbridge would pace this transition “appropriately.”
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Enbridge and TC Energy in the face of a transitioning industry
Today, CEOs of Enbridge and TC Energy, Canada’s largest pipeline companies, said they see opportunities in their natural gas extensive businesses to transition to cleaner energies. This happened at the online Scotiabank CAPP Energy Symposium.
Accordingly, the two Calgary-based companies, among North America’s largest energy infrastructure firms, would place their transition “appropriately.” In fact, the majority of their business is focused on storing and transporting fossil fuels.
For instance, TC Energy has the most extensive natural gas pipeline system in North America. Therefore, CEO François Poirier said the company sees plenty of opportunities to allocate capital to that business. In fact, to address the energy transition, the company would use its output in organic bolt-on projects.
In this regard, storage and transportation assets will be critical as the energy transition moves forward. Besides, both companies foresee introducing new technologies aimed at reducing greenhouse gas emissions. For instance, they can be implementing more carbon capture and storage and hydrogen solutions.
Natural gas: key in the transition
“Transition can’t come fast enough from our perspective, but we have to pace it appropriately. Thus, I believe natural gas and liquids will continue to play a prominent role in the energy economy for decades to come,” Poirier said.
Moreover, “I believe our existing assets will continue to be used and be useful for quite a long time. Besides, they will generate a tremendous amount of cash flow. Thus, we will be able to deploy it into the energy transition.”
On the other hand, Enbridge CEO Al Monaco said he saw gas as the “great enabler” for the energy transition. Indeed, he considers this commodity to be a reliable source of power. Moreover, they could compete with renewables.
“It’s low-cost, abundant, it’s important in reducing utilization of coal, but it’s equally important in fostering renewables. Thus, you’ve got to be able to create baseload capability, and it addresses the enormous intermittency challenges,” he said.
Finally, Reuters reported both companies are investing in clean energy projects. In brief, TC Energy and Enbridge are looking into developing technology to transport hydrogen.