Home Energy company DTE Energy spin-off DT Midstream considers carbon capture as it begins to market as a new independent company

DTE Energy spin-off DT Midstream considers carbon capture as it begins to market as a new independent company


DT Midstream Inc., the Detroit-based DTE Energy derivative gas pipeline operator, which began trading on the New York Stock Exchange on Thursday, has an eye on carbon capture as it assesses how to seize emerging opportunities of the energy transition.

DT “is actively working” around technologies to reduce its greenhouse gas emissions and sees carbon sequestration as “the most interesting and the one that will emerge soonest,” CEO David Slater said in an interview.

U.S. pipeline companies have increasingly looked for ways to make their vast array of fossil fuel pipelines still relevant in a low-carbon economy and have mostly abandoned new projects due to fierce opposition from the public. climate advocates. Other possibilities include the transport of hydrogen or carbon dioxide captured in the air.

Energy companies such as Occidental Petroleum Corp. and Valero Energy Corp. recently announced carbon sequestration plans, which climatologists have long viewed as essential to meeting emission reduction targets.

“It’s a really attractive way to reduce the carbon footprint and it’s backed by federal tax credits,” Slater said in an interview. “I think this will be one of the first areas of this trip.”

Meanwhile, Detroit-based DT Midstream is focused on expanding the capacity of its existing pipelines through additional investments to take advantage of the growing use of natural gas. The company operates nearly 1,200 miles of pipelines and over 1,000 miles of gathering lines in the gas-rich basins of Marcellus, Utica and Haynesville. Opportunities are emerging in particular at Haynesville, a formation that covers parts of Arkansas, Louisiana and eastern Texas, amid growing drilling activity and strong demand from both domestic markets. and exporters of liquefied natural gas, according to Slater.

“We’re seeing a lot of organic growth,” Slater said. The company expects earnings before interest, taxes and other items to increase 7% to $ 750 million this year.

Utilities from Dominion Energy Inc. to CenterPoint Energy Inc. to Consolidated Edison Inc. have discontinued their pipeline operations as they focus on faster growing renewables.

DT Midstream was trading at $ 39.25 a share at 10:09 a.m. in New York. Credit Suisse analyst Spiro Dounis previously made an equivalent buy recommendation and set a target price of $ 52 on the stock.