New York’s ConEd pulling back on gas investments, saying they’re not the long-term solution

New York’s ConEd pulling back on gas investments, saying they’re not the long-term solution

December 31, 2020 wmubyfndfnts 0

first_imgNew York’s ConEd pulling back on gas investments, saying they’re not the long-term solution FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):Consolidated Edison Inc. will no longer invest in long-haul natural gas pipelines and may sell its existing portfolio, the company said just days after outlining plans for adopting alternative energy technology.“I don’t expect we’ll be making any further investments in those types of gas transmission assets,” Chairman, President and CEO John McAvoy said during an Aug. 26 investor presentation about environmental, social and governance issues.The executive made the observation after being asked about the utility’s stakes in the Stagecoach Pipeline & Storage Co. LLC joint venture with Crestwood Equity Partners LP and the Equitrans Midstream Corp.-led Mountain Valley Pipeline LLC. ConEd “certainly would” also consider monetizing those assets, McAvoy added.“We made those investments five to seven years ago, and at that time we — and frankly many others — viewed natural gas as having a fairly large role in the transition to the clean energy economy,” McAvoy said. “That view has largely changed, and natural gas, while it can provide emissions reductions, is no longer … part of the longer-term view,” particularly in the U.S. Northeast where state regulators have blocked pipeline projects.ConEd is one of several utilities looking to ramp up their renewable energy footprint as cracks appear in the role of natural gas as a bridge fuel between hydrocarbons and cleaner forms of energy. As of mid-July, 13 of the 30 largest U.S. publicly traded electric and gas utilities had set goals to achieve either zero or net-zero greenhouse gas emissions by 2050 or earlier or have set a goal of 100% clean electricity. At least 10 plan to reduce emissions of greenhouse gases, primarily methane, from their gas distribution and retail sales operations. Many of these efforts involve replacing older gas delivery pipelines.Dominion Energy Inc., which is targeting net-zero emissions by 2050, recently agreed to sell its gas transmission and storage business to Berkshire Hathaway Energy for over $9.7 billion. A driving force behind that decision was Virginia’s Clean Energy Economy Act enacted in April, according to Dennis Sperduto, principal analyst with Regulatory Research Associates, a group within S&P Global Market Intelligence.[Allison Good]More ($): ConEd may sell pipeline stakes as it reconsiders gas transmission investmentslast_img

 

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