TC Energy shares energy optimism at Gastech for LNG as world’s future fuel

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TC Energy’s Executive Vice-President and Chief Operating Officer, Natural Gas Pipelines, Stanley Chapman III, discusses the importance of natural gas during a strategic leadership panel at Gastech 2024 in Houston on Thursday. 

North American gas is abundant and important to the world. To ensure it can reach its full potential as a clean energy fuel now and into the future, regulatory reform, energy addition and industry collaboration are all needed.

During the Reimagining North American LNG project strategy to overcome barriers and meet new demand session – a strategic leadership panel at GasTech in Houston, TC Energy’s Executive Vice-President and Chief Operating Officer, Natural Gas Pipelines, Stanley Chapman III gave valuable insight into the importance of natural gas.

“If we’re going to continue to meet the energy demands of eight billion people across the globe, we need more of all forms of energy,” Chapman told the audience, emphasizing ‘energy addition’ over transition.

“With nearly one billion people living in the world today without access to affordable and reliable energy – and an additional one-and-a half to two billion people that are going to join the world between now and 2045, we absolutely need more natural gas. It is going to be critical going forward. Natural gas is the reliable, instantaneous dispatch, day or night, rain or shine, 24 hours a day, seven days a week answer to that demand.”

Natural gas is more than a bridge fuel, it's the destination

Chapman discussed the future demand for natural gas as more than a ‘bridge fuel.’ He sees it as a critical part of the energy mix that can meet demand while reducing emissions – noting the emissions reductions we’ve seen since the early 2000s.

TC Energy

“Some talk of natural gas as being a bridge fuel. If it is, it’s a really, really, really, long bridge. Natural gas is going to be with us for not just many decades to come, but many generations to come,” noted Chapman. “When I look at the growing demand for energy, whether it’s related to AI, data centers and LNG exports, power generation growth, or just residential, commercial loads, [natural gas] is going to be with us for a very, very, very long time. And despite being the world’s largest gas producer and a pretty darn big consumer, the United States has led the world in emissions reductions by 24 per cent from 2005 to 2020.”

Growing demand for LNG and the need for permitting reform   

The session examined the compatibility of LNG with renewables, including the areas of energy reliability, security, sustainability, through the lens of the U.S. pause on LNG permits.

“At TC Energy, we have a little bit of a unique perspective in that we’re the only one of our peers that has historic and extensive operations throughout Canada, the U.S. and Mexico,” said Chapman.

“From a North American perspective, we see a tripling of LNG capacity over the next 10 years – the opportunity set out there is huge. The pause does put a sense of uncertainty, but the good news is, you heard the Energy Secretary here in Houston back in March say it’s soon going to be behind us.”

Panelists suggested that while the pause created uncertainty, the sector was still expected to experience huge growth.

Chapman drew attention to challenges amid an abundance of supply in North America, and clear signals for demand.

“What I fear more is, can we build the midstream infrastructure necessary to connect the supply to those demand centers? And what comes first and foremost to the front for me, in that respect, is permitting reform.”

“We have to limit judicial challenge – we’d like to see FERC act more as a lead agency, and lastly, there has to be something to address this battle between FERC and the states. Those three key issues on permitting reform are absolutely necessary for us to reach our full potential.”

Collaboration and partnership are the keys to success

The panel also touched on the subject of investment – and how the industry can collaborate more. Chapman described himself as an optimist.

“I would like to think that we have more in common than not; we all want the same thing – affordable, reliable, sustainable energy,” said Chapman, while emphasizing the strength of partnerships. “Whether it’s with Indigenous groups in Canada or with the Comisión Federal de Electricidad (CFE) in Mexico, partnerships are key to our success.” “In Mexico, the CFE doesn’t look at our 700 km subsea pipeline project [Southeast Gateway] we’re building for them as just a gas project. They look at it as a social investment that is going to bridge the energy poverty gap between northern Mexico and Southern Mexico and bring reliable, affordable, clean energy to millions, many of whom are getting that for the very first time in their lives,” said Chapman. “That’s what makes me excited about what we do as a company, and that’s why I stay engaged in my work.”

A bright future ahead

On the issue of ensuring the industry has the talent it needs to move forward, Chapman said he was confident in the enthusiasm he sees among the next generation.

“We have a group coming up behind us that’s going to carry the torch for us,” he added. “Big picture wise, what I think is – can we challenge ourselves to say, ‘we’re not a bunch of energy companies that dabble in technology, we’re technology companies that deliver energy.’ And if you look at yourself in that perspective, you open yourself to a whole other breadth of talent that’s out there that may not otherwise be attracted to what we do.”

In conclusion, the panel underscored the pivotal role that natural gas will play in the global energy landscape and the bright future ahead for the energy industry.

Chapman shared a stage with Jason Klein, President & CEO of LNG Canada, a TC Energy customer, and Ben Dell, Founder & Managing Partner, Kimmeridge, Bhupesh Thakkar, SVP & GM for LNG and Regas, Bechtel Energy, Kent COO Tush Doshi, and Payvand Fazel, VP Corporate Strategic Development, Williams.

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