Energy Transition In The Natural Gas Industry

With over four decades of experience in the natural gas industry, Terry Kreuz is a seasoned leader committed to transforming traditional energy into a more sustainable future. As Managing Director at National Fuel Gas Company, he focuses on driving innovation and guiding the industry’s evolution toward reliable, responsible, and low-carbon solutions.

The natural gas industry stands at a pivotal moment. While public discourse often frames energy transition as an either-or proposition, fossil fuels versus renewables, those of us working within established energy companies see a more nuanced reality. The path forward requires leveraging existing infrastructure and expertise while simultaneously building tomorrow’s energy systems.

The Pragmatic Approach to Decarbonization

After years of developing energy transition strategies, I’ve learned that successful decarbonization initiatives must balance environmental goals with operational realities. The most impactful projects often emerge from understanding what a company does exceptionally well and finding new applications for those core competencies.

Take, for instance, reducing methane emissions. The technology and operational knowledge required to detect, capture, and manage methane are not fundamentally different from those used in traditional pipeline operations. It’s an evolution of existing capabilities. This familiarity allows teams to implement solutions more rapidly and cost-effectively than entirely novel technologies might permit.

The results speak volumes. Industry-wide, we’re seeing methane emissions reductions of 20-30% or more within relatively short timeframes. These aren’t theoretical future targets. These are measurable improvements that are happening now through enhanced leak detection, equipment upgrades, and operational modifications.

Beyond Traditional Boundaries

What’s particularly interesting is how energy transition work pushes companies beyond their traditional boundaries. Renewable natural gas development, for example, requires partnerships with dairy farms, landfills, and wastewater treatment facilities sectors that most pipeline companies have rarely engaged with historically.

 

The transition is already underway, driven by a combination of environmental imperatives, economic opportunities, and technological advances.

These collaborations reveal unexpected enhancements. Agricultural operations need waste management solutions, while energy companies need renewable feedstocks. The resulting partnerships create value for both parties while advancing environmental objectives. It’s a reminder that energy transition isn’t solely about technology, it’s equally about building new relationships and business models.

The Infrastructure Advantage

One advantage established energy companies possess is existing infrastructure. Pipeline networks, compression stations, and distribution systems represent billions of dollars in assets that, with modifications, can support multiple energy sources. Rather than viewing this infrastructure as stranded assets, forward-thinking companies are reimagining how these systems might accommodate hydrogen blending, carbon capture, or renewable gas integration.

This perspective shift matters because infrastructure development timelines are measured in years, not months. Companies that can adapt existing assets while building new capabilities position themselves more favorably than those starting from scratch.

Emerging Technologies and Real-World Applications

The energy transition landscape includes numerous emerging technologies, each at different stages of commercial viability. Carbon capture and storage, clean hydrogen production, and geothermal systems all show promise, but they require different risk profiles and investment horizons.

My experience suggests that successful energy transition strategies combine near-term operational improvements with longer-term technology development. Immediate wins in emissions reduction and efficiency provide credibility and cash flow to fund more speculative but potentially transformative initiatives.

Geothermal district heating networks, for instance, represent a significant departure from traditional natural gas operations. Yet the project management skills, regulatory experience, and community engagement capabilities developed through decades of pipeline work translate surprisingly well to thermal network development.

Organizational Evolution

The most underappreciated aspect of energy transition is organizational change. Successful initiatives require cross-functional teams that can bridge traditional operational silos. Engineers must collaborate with environmental scientists, commercial teams need to understand renewable energy markets, and operations personnel require training on new technologies and safety protocols.

Creating dedicated energy transition teams helps, but the broader organization must evolve as well. This means updating performance metrics, revising risk assessment frameworks, and often challenging long-held assumptions about what business the company is actually in.

Market Dynamics and Customer Expectations

Customer expectations are shifting, particularly among industrial and institutional users. Many are setting their own decarbonization targets and seeking energy suppliers who can support those goals. This creates opportunities for companies that can offer integrated solutions, traditional energy services combined with renewable options, efficiency improvements, and emissions reduction strategies.

The regulatory landscape is also evolving with various jurisdictions implementing different approaches to the energy transition. Companies operating across multiple markets must navigate this complexity while maintaining operational consistency and cost-effectiveness.

Looking Ahead

The Energy transition in the natural gas industry isn’t about abandoning existing capabilities; it’s about expanding them. The companies that succeed will be those that recognize how their fundamental strengths in energy infrastructure, operations, and customer service can be applied to emerging energy systems.

The transition is already underway, driven by a combination of environmental imperatives, economic opportunities, and technological advances. The question isn’t whether change will occur, but how quickly companies can adapt their strategies and operations to remain relevant in an evolving energy landscape.

From my perspective in the field, the most promising developments come from treating energy transition not as a separate initiative, but as an evolution of core business practices. This approach acknowledges both the urgency of climate action and the practical realities of transforming the energy system.