Page 6 - NorthAmOil Week 17 2022

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

TC Energy and GreenGasUSA to

develop RNG transport hubs

US CANADA’S TC Energy and GreenGasUSA, an operate the RNG transport hubs, which it
owner and operator of renewable natural gas said would develop “critical steps” toward
(RNG) value chain assets, have announced a the acceleration of methane capture projects
strategic collaboration for the development of and the reduction of greenhouse gas (GHG)
RNG transportation hubs. emissions.
RNG is the product of the decomposition of The Canadian company has been transport-
organic matter. Interest in its use has been rising ing RNG in the US since 2005, and currently
for some time against the backdrop of the energy owns 10 RNG interconnects across its US gas
transition, and more recently the war in Ukraine operations. TC Energy is targeting rapid expan-
has intensified the focus on development of alter- sion of this network to provide increased capa-
native fuels for both energy security and decar- bility before the end of this year.
bonisation purposes. The collaboration will see transportation
The proposed hubs would provide cen- hubs developed over the coming four years in
tralised access to energy transportation infra- several states along TC Energy’s 32,700-mile
structure already in place for RNG sources, (52,626-km) US gas pipeline system, which con-
including farms, landfills and wastewater treat- sists of 13 major pipelines spanning 40 states.
ment facilities. The first hub should be in service by the second
Under their collaboration, GreenGasUSA quarter of 2023.
would originate RNG and condition the gas to TC Energy and GreenGasUSA expect the
pipeline quality before delivering it to the RNG collaboration to result in various benefits. They
hubs. The gas would be delivered to the hubs anticipate that the partnership will reduce GHG
by both pipeline and compressed natural gas emissions by providing cost-effective market
(CNG) trucks, allowing multiple users to con- access to RNG developers. They also expect to
nect to the pipeline network. contribute to an increase in biogas sources in
TC Energy intends to build, own and renewable energy markets.™

PERFORMANCE

CNRL achieves CAD100bn market valuation

CANADA CANADIAN Natural Resources Ltd (CNRL) of many in the industry who had lowered their
reached a market valuation of over CAD100bn payouts in response to oil prices crashing at
($78bn) after its share price climbed by 1.9% the onset of the coronavirus (COVID-19)
on April 20 to an all-time high of CAD85.95 pandemic.
($67.11). It became the first oil and gas producer Now, analysts including Stifel FirstEnergy are
listed in Toronto to surpass a market valuation speculating over a potential stock split. Over the
of CAD100bn. past 18 months the company has split its shares
CNRL is Canada’s CNRL’s stock has shot up 180% since the start twice. With CNRL trading at an all-time high,
largest producer of of 2021, with the company’s market value soaring its record-setting market valuation is likely to
heavy crude. past Suncor Energy, previously the most valua- attract increased investor attention, a Stifel ana-
ble Canadian oil producer. Its performance has lyst, Robert Fitzmartyn, said.
also seen it leap ahead of some leading US inde- The company achieved record average
pendents, including Pioneer Natural Resources, production volumes of around 1.2mn barrels
after adjusting for US dollars. The Calgary-based per day (bpd) of oil and gas in 2021, marking
company now sits as the fourth most valuable a 6% rise on 2020 levels. CNRL’s share price
publicly traded oil and gas producer in North had dropped back somewhat in recent days to
America, trailing only ExxonMobil, Chevron CAD80.15 ($62.58) as of April 28, but this is still
and ConocoPhillips. higher than its stock has ever been prior to the
CNRL’s share prices have been rising since past month.
March 2020, when the firm went against The company is anticipated to release its
investor expectations by raising its dividend. results for the first quarter of 2022 around May
Analysts had expected a cut to the dividend, 5, with analysts forecasting higher earnings on
with the company following in the footsteps both a sequential and a year-on-year basis.™

P6 www. NEWSBASE .com Week 17 28•April•2022