Natural gas utilities still desirable investment target: report

Natural gas utilities remain a desirable investment target, in light of the consistent return on investment and equity that they offer, a new report commissioned by the American Gas Association (AGA) and the Canadian Gas Association (CGA) concludes.

The report, published on July 14, was conducted by Guidehouse and is based on interviews with members of the investment community. It aimed to uncover any shifts in investor sentiment towards natural gas utilities, decision-making around investing in them, decarbonisation opportunities, threats facing those utilities and perceptions of the policy and regulatory framework.

"Investors receive stability and consistency in their portfolios from natural gas utilities," AGA's director for energy analysis, Juan Alvarado, said in a statement. "Investment in natural gas utilities allows investors to earn a dependable return while managing the risk level of their portfolios, and this study proves it."

He also said the report showed that investors viewed utilities proactively addressing decarbonisation positively, and "are aware of states where regulatory mechanisms are in place allowing utilities a reasonable opportunity to earn their allowed return."

“Canada’s natural gas utilities deliver affordable, reliable and clean energy to customers across the country to meet daily energy needs,” added Paul Cheliak, CGA's vice president for strategy and delivery. “Natural gas utilities are advancing several low-emission fuels streams and technologies that position them for long-term success.  We are pleased the study has affirmed that investors remain confident that utilities will play an important part of the North American energy future.”

The report can be read in full here.