MPLX LP (NYSE: MPLX) has established a new 2030 target to reduce methane emissions intensity by 75% below 2016 levels.
The reduction target applies to MPLX’s natural gas gathering and processing operations and represents an expansion of the company’s existing 2025 target to reduce methane emissions intensity by 50% below 2016 levels, according to a statement from MLPX.
MPLX is a diversified, large-cap MLP that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. The company owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins, among other operations, according to the firm.
MLPX is found in many portfolios offering exposure to energy infrastructure and MLPs. The energy company is a top five holding in the Alerian MLP ETF (AMLP) (9.74%) and a top 15 holding in the Alerian Energy Infrastructure ETF (ENFR) (3.74%).
MPLX has achieved an approximate 45% reduction in its methane emissions intensity toward its 2025 goal through its Focus on Methane program, a holistic approach to voluntarily reduce methane emissions intensity across MPLX’s natural gas gathering and processing operations, according to a statement from the firm.
“Expanding on our methane target further reduces the carbon profile of our natural gas business and demonstrates our commitment to lead in sustainable energy,” Michael J. Hennigan, MPLX chairman, president, and CEO, said in a statement. “As the energy industry evolves, we are positioning ourselves to continue delivering positive results in an energy-diverse future.”
Many midstream companies have made ESG reporting a priority as they work to achieve environmental goals, with some companies, such as Enbridge Inc., tethering executive compensation to ESG goals.
Midstream companies have made strides in recent years to improve ESG reporting and environmental metrics, with a handful of names targeting net zero emissions by 2050, supporting the case for midstream as an ESG-conscious investment.
Notably, even as the world transitions towards net zero emissions, oil and natural gas will continue to remain relevant within the global energy mix for years to come, making up roughly 48% of total the energy supply in 2030 as renewable energy sources grow and the world transitions away from unsustainable energy sources, according to the Net Zero by 2050 Scenario published by the IEA.
Midstream companies will also play a significant role in achieving net zero emissions by 2050. A number of midstream companies are partnering with other energy companies to explore opportunities around hydrogen, carbon capture, and other initiatives related to the energy transition, according to Alerian.
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