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The green trend: TC Energy pledges to be carbon-free by 2050

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To achieve carbon neutrality from operations, TC Energy Corporation announced its environmental, social, and governance (ESG) goals, as well as emission reduction strategies.

Currently, this Calgary-based Canadian company is a leading midstream energy services provider among those focused on natural gas. Yet, aside from pipeline maintenance and power generation, the company also distributes and stores natural gas.

Over the past six months, TC Energy's stock has outperformed the industry average with almost a 3 point lead: gaining 11.3% versus 8.6%.

Due to the global industry moving towards green energy, an increasing number of investors and environmental groups are pushing the company to become 100% emission-free by 2050. In addition, these pressures align with the plans of Canada's prime minister, Justin Trudeau, which envisions a relatively quick transition for the country from carbon to renewable energy sources.

Thus, it came as no surprise when TC Energy announced that it would target this goal alongside them, as well as hope to cut greenhouse-gas emissions intensity from its operations by 30% by 2030.

Five major areas will be targeted by the company to reduce the intensity of its emissions. By acquiring low-carbon energy sources and investing in low-carbon energy, TC Energy will reduce its carbon emissions. It also plans to use carbon credits and offsets. Aside from this, the company also plans to improve efficiencies in its operations with some additional automation of the linear processes. It will help manage emissions, reduce methane leaks and flaring from normal operations.

The carbon dioxide, methane, and nitrogen oxide emissions that TC Energy targets pertain to Scope 1 and 2. The company's natural gas pipeline assets generate these emissions primarily from fuel combustion. It is commendable, that as an interim measure to reach net-zero emissions, TC Energy also commits to reducing Scope 3 emissions.

Additionally, a partnership between TC Energy and Nikola Corporation NKLA was announced in early October in order to build hydrogen production facilities in the U.S. and Canada, as part of each company's sustainability initiatives. Hydrogen is particularly important when it comes to carbon neutrality.

But TC Energy is not alone in this process. Investors' demands to reduce emissions have pushed a lot of industry's top players to set targets to increase renewable capacity and improve efficiency. And in order to clean up the environment, energy companies invested billions of dollars in renewable energy.

Pipeline operator Enbridge Inc. is a prime example of such a trend. Last year the company set emissions reduction targets, hoping to be a net-zero emitter of greenhouse gases by 2050 as well. In the future, we anticipate that there will be a significant increase in pledges like this one. But whether or not they will be fruitful still remains to be seen.

Watch how you can use Rextag to identify ESG improvement opportunities in our latest webinar here: https://youtu.be/XBa_MbL0FME

If you are interested in learning more about the industry's journey to sustainability, as well as how it may impact your local businesses, please, connect with our Houston sales office to see our intelligence for yourself.

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Expansion Is The Goal: Ironwood II Completes Asset Merger And Assumes Management of Nuevo Midstream Dos’ Eagle Ford Assets

Ironwood Midstream expanded its operations in the Eagle Ford region through its merger with Nuevo Midstream. Thanks to this, Ironwood II has increased its crude oil and natural gas throughput capacities in the famous shale to approximately 400,000 bbl/d and 410 MMcf/d, respectively. With 390 miles of pipelines, the company manages 245,000 acres of dedicated land.

TC Energy splurged $0.8 billion on the project that targets emissions. Well, sorta. According to the idea, existing lines of the ANR Pipeline Company will be expanded to serve markets in the #Midwestern US and simultaneously updated to reduce discharge by 30,000 metric tons CO2e per year - equivalent to removing almost 7000 cars from the road annually. Remarkable goals. With the current timeline, the project will be fully operational by the end of 2025, thanks to long-term transportation agreements secured by ANR.

In order to sell its part of the sprawling Eagle Ford Shale acreage, Chesapeake Energy Corp. on January 18 concluded an agreement to trade its Brazos Valley region assets to WildFire Energy I LLC for $1.425 billion.

On January 6, Phillips 66 announced that it plans to acquire more than 43% of DCP Midstream LP for $3.8 billion, expanding the business in the oil & gas business.

On January 5 Northern Oil & Gas (NOG) concluded a deal to acquire working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin, according to a January 9 press release. Firstly estimated at $330 million in cash, the deal was signed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on October 19. NOG paid $29 million more for the additional interests, which now totalled 39.958%. Finally, the deal closed for $320 million in cash and $43 million in debt at signing in October with the finance of Minnetonka, Minn.-based NOG with cash on hand, operating free cash flow, and assistance from its revolving credit facility.

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