While upstream and RSG grabbed all of the big headlines in 2021, 2022 will focus on the midstream too. Today’s RSG estimates encompass ~15-20% of the natural gas market. While upstream companies have led the way, midstream companies have an essential role, especially as RSG gains further prominence and the market desires more than responsible, low emission production but also responsible, low emission gathering, processing, and transmission.
There is no doubt that natural gas will continue to play a critical role in the global energy mix for many decades to come. But despite that reality, scrutiny on ESG performance will only increase as society wrestles with the conflicting desire for affordable, reliable energy on the one hand and decarbonization and sustainability on the other hand.
As such, midstream companies that continue to demonstrate their commitment to operational excellence and environmental stewardship through transparent, independent certification and continuous emissions monitoring are likely to excel, while those that don’t are likely to face ever-increasing challenges. Already in 2021, certain midstream companies have demonstrated their ESG leadership by selecting Project Canary as their operational and emissions-monitoring partner:
- Tallgrass Energy announced its intent to seek first-of-its-kind operational and emissions certification for the Rockies Express Pipeline.
- XCL Midstream became the first midstream company to commit to certification and emissions monitoring for the entirety of its gathering and processing facilities; and
- Olympus Energy became the first integrated company to commit to certification and monitoring for the entirety of its upstream and midstream facilities.
The scope and nature of midstream infrastructure presents a number of opportunities for midstream companies to lead the ESG movement in 2022 and beyond.
- Continuing to embrace and commit to accuracy and transparency through independent certification and continuous emissions monitoring;
- Pioneering the development of a responsibly sourced natural gas liquids market for the heavier components in the hydrocarbon value chain (be it certified ethane, certified propane, and/or certificated butane); and,
- Positioning to participate and lead in carbon capture & sequestration (CCS) and other emerging energy transition opportunities.
Project Canary’s Midstream Certification and continuous emission monitoring program is designed to provide a robust, credible, and quantified view of responsibility in the midstream segment. As midstream companies develop their ESG resolutions for 2022, Project Canary would enjoy the opportunity to be part of that conversation and would welcome the opportunity to partner.
If interested, please contact Edward Lush, Head of Energy Transitions – Midstream, via phone: (303) 915-1762 or email: firstname.lastname@example.org.