Yahoo Finance Southern Company (SO) Unit Increases Low-Emission Procurement
Southern Company’s SO unit, Virginia Natural Gas (“VNG”), recently announced a significant increase in the procurement of natural gas supply that has been sourced, transported, or distributed by companies committed to reducing methane emissions. This strategy is part of the company’s Sustainable Gas Program (SGP), which has been approved by the Virginia State Corporation Commission.
VNG recently signed new agreements with several natural gas suppliers, which resulted in Next Generation Natural Gas (NGNG) meeting up to half of its customers' energy demands as of March 2023.
According to Ken Yagelski, director of Gas Supply for Virginia Natural Gas, the abovementioned natural gas is certified to have lower greenhouse gas emissions than traditional natural gas. He added that VNG has strong relationship with environmentally conscious gas producers who focus on effective reduction of methane emissions during the production cycle.
The recently approved SGP program supports the procurement of both NGNG and Renewable Natural Gas (RNG), while facilitating the integration of RNG sources into VNG's pipeline system.
The aforementioned program is a major step toward a low-carbon future. With its approval, Virginia Natural Gas can procure additional amounts of NGNG, increase the amount of lower-emission natural gas available to its customers, and pursue its climatic and environmental goals.
Since 2019, this SO subsidiary has been procuring natural gas that has been certified to have lower greenhouse gas emissions. The move is part of VNG’s broader commitment to seek gas supply that has been sourced, transported or distributed by companies that have pledged to reduce greenhouse gas emissions to less than 1% across the natural gas value chain.
Virginia Natural Gas' commitment to reducing greenhouse gas emissions across its value chain is commendable. The decision to procure additional amounts of NGNG and integrate RNG sources into its pipeline system will help achieve its own environmental goals. It will also play a crucial role in achieving a sustainable, affordable energy future while reducing greenhouse gas emissions.
According to VNG, the decision to procure additional amounts of NGNG supports its efforts to decarbonize the natural gas supply chain. The move is also in sync with the company’s commitment to achieving net-zero greenhouse emissions by 2050.
Southern Company, through its subsidiaries, engages in the generation, transmission and distribution of electricity. It operates through three segments – Gas Distribution Operations, Gas Pipeline Investments and Gas Marketing Services. Virginia Natural Gas, a subsidiary of SO, provides natural gas service to more than 300K customers in Southeast Virginia.
Zacks Rank and Key Picks
Currently, Southern Company carries a Zacks Rank #3 (Hold). Investors interested in the utility sector might look at some better-ranked stocks like MYR Group MYRG, sporting a Zacks Rank #1 (Strong Buy), and CenterPoint Energy CNP and E.ON EONGY, each holding a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.
MYR Group: The company is worth approximately $2.00 billion. MYRG’s shares have risen 37% in the past year.
MYR Group is a holding company of specialty contractors, providing comprehensive electrical infrastructure services in Canada and the United States. It offers design, engineering, procurement, construction, upgrade, maintenance, and repair services for transmission and distribution networks, and substation facilities of any size and type.
CenterPoint Energy: The company is valued at around $18.59 billion. CNP currently pays $0.76 per share to its investors.
CenterPoint Energy delivered an average earnings surprise of 2.10% for the last four quarters and its current dividend yield is 2.58%.
E.ON:The company is valued at around $32.91 billion. In the past year, EONGY’s shares have risen 9.1%.
EONGY is the world's largest investor-owned energy service provider with operations in the following businesses: energy, chemicals, real estate, oil, telecommunications, distribution/logistics, aluminum and silicon wafers.
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