I recently had the opportunity to join business leaders at the 2022 J.P. Morgan Energy, Power & Renewables Conference to discuss energy markets, industry trends, technology and the outlook for natural gas. As a society we are seeing the interplay of geopolitics, supply chain disruptions, climate concerns and growing demand for energy on a global scale.
At Williams, we believe natural gas is the No. 1 tool available today to meet energy demand and reduce greenhouse gas emissions by displacing high-carbon fuels like coal. Natural gas is abundant, reliable and it has a cleaner emissions profile than other traditional energy sources. It also has unique characteristics that allow it to support renewables like wind and solar as well as emerging opportunities such as clean hydrogen blending.
Our employees are working hard to find solutions to today’s energy challenges by connecting the best supplies with growing markets for clean energy, while minimizing our environmental footprint and incorporating new technology. We are preparing for the future by investing hundreds of millions of dollars in our existing infrastructure to make it more efficient and adaptable as we also expand the volume of natural gas we can move across the United States on our 30,000-mile network.
We are looking overseas, as well, where demand for natural gas is robust, especially as Europe has identified LNG, or liquefied natural gas, as the prime strategy to move away from its dependency on Russian energy. LNG is simply natural gas that has been chilled to a liquid state condensing the volume considerably, thus enabling large quantities to be transported in ocean-going vessels. According to Wood Mackenzie, total U.S. natural gas demand, including net exports, is expected to grow by 19 billion cubic feet a day through 2030 compared to 2021 demand, primarily led by LNG export growth.
LNG enables the environmental benefits of natural gas to be shared internationally by replacing carbon-heavy fuels while supporting economic growth. As one of the leading providers of natural gas to major U.S. export terminals, Williams is taking additional steps to help overseas (and domestic) consumers meet sustainability goals by applying new technology to support large-scale certification of next generation natural gas.
We may not think about it every time we charge a phone or adjust the thermostat, but natural gas is at work around the clock, generating the power required to maintain modern life. We are living in dynamic times that require innovative technical solutions, cohesive energy policies and strong leadership by companies that are committed to doing what’s right. I’m proud of the company culture we’ve built where our employees know we can’t sit still if we are to meet growing energy demand while at the same time reducing emissions.
Our upcoming sustainability report will address in detail how we are undertaking these challenges. If you’d like to receive the report as soon as it comes out, I encourage you to sign up for it here.