Williams Is With the Band
Don’t tell Alan Armstrong the future of natural gas is on shaky ground. Presenting this week at the Barclays Energy-Power Conference, the CEO of Tulsa-based Williams laid out the facts as he sees them: While producers and midstreamers look to hitch their wagons to LNG, it would be folly to underestimate the immense consumer demand now on the rise. Reese Energy Consulting today is following the latest from Williams and the role of natural gas as the reliable back-up singer to renewable performers that can’t always hit the high notes—this, in a band we call the Electrification of Everything and the Power Grid (EEPG).
In a nutshell, Williams enjoyed a bountiful summer this year as the U.S. hit a single-day record power burn of 53 BCF in July and breached 50 BCF on nine consecutive days. Yep, July temps can push the mercury, but aside from seasonal spikes and growing LNG exports, Armstrong pointed out Williams’ outlook for where it sees gas demand that will continue to grow stronger. Namely, to compensate for the growing share of renewables. Which also makes for great business if you happen to drive one of the nation’s largest gas pipeline transporters.
Armstrong adds that the Administration’s push to implement wind and solar renewables for large-scale electrification simply can’t happen without natural gas as a reliable, complementary partner. To that end, he adds, infrastructure capacity must be increased. As for Williams, don’t look for this pipeline giant to fixate on LNG feed gas demand. Not while the EEPG offers a can’t-miss engagement.