To Our Stakeholders:

Welcome to EnLink’s 2023 Sustainability Report. While this report reflects our sustainability progress throughout 2023, we continue to look forward – building out our vision for the “future of midstream.”

The future of midstream goes hand-in-hand with the global energy transition or the “energy transformation,” as we call it at EnLink and will refer to it in this 2023 Sustainability Report. The energy transformation involves the gradual addition of more renewable sources of energy to the energy mix and the global effort to reduce greenhouse gas emissions, and its success is dependent on natural gas, emissions reduction technologies, and responsible operators, like EnLink.

1. Natural Gas Is Key to the Energy Transformation

Research shows that the world’s need for fossil fuels will continue for decades to come. Our modern societies use hydrocarbons to power homes and businesses, provide fuel for transportation, and create the everyday products that are integral to our way of life. As an abundant, inexpensive, and cleaner-burning fossil fuel, natural gas can help satisfy demand while reducing emissions. Importantly, as natural gas is a dispatchable energy source that can be transported over long distances, stored, and accessed on demand, it enables the use of renewables like wind or solar that are intermittent sources of energy.

Natural gas production and natural gas’ share of U.S. power generation roughly doubled from 2005 to 2023. During that same time, total carbon dioxide (CO₂) emissions declined approximately 20% and Gross Domestic Product grew approximately 40%. In short, natural gas is facilitating a reduction in CO₂ emissions while continuing to provide the energy resources a modern society needs and contributing to the U.S. economy.

EnLink’s midstream business is 90% natural gas and natural gas liquids, which gives us a successful and sustainable pathway to participate in the energy transformation.

2. Emissions Reduction Technologies Play an Important Role

We believe that increasing the proportion of natural gas in the energy mix is one way to decrease overall emissions from energy production. Another is finding innovative ways to reduce emissions from both the energy industry and other industrial processes. This is where carbon capture and sequestration (CCS) can make a big impact. The International Energy Agency (IEA) has stated that “reaching net zero will be virtually impossible without” CCS and identified CCS as possibly the only practical solution for reducing emissions from hard-to-abate industries like cement and chemicals production.¹

CCS is a proven process that captures CO₂ emissions before they are emitted into the atmosphere and transports them via pipelines to geological formations where the CO₂ can be stored safely and permanently deep underground.

EnLink launched our Carbon Solutions business in 2021 to provide carbon transportation in support of CCS projects. CO₂ transportation is much like the transportation of hydrocarbons. Click here to read more about our Carbon Solutions business, which is positioning EnLink as the CO₂ transporter of choice in the Gulf Coast region.

3. The Energy Industry Must Operate Responsibly

Identifying and implementing emissions reduction technologies, like CCS, is important to the energy transformation, but there is a lot we can also do as midstream companies to reduce emissions from our own operations and to operate safely and responsibly.

The oil and gas industry is one of the most heavily regulated industries in the United States. Because of this, fossil fuel production in the United States is comparatively cleaner than in other parts of the world. EnLink invests significant time and resources to comply with these important regulations, while delivering oil and gas products that power our daily lives in a safe and responsible manner.

We are committed to operating safely and in an environmentally responsible manner, while utilizing a rigorous operational excellence program to implement continuous improvements that improve our customer experience, support our sustainability, and grow our business. You can read about our operational excellence program in this Sustainability Report. This program is one way that we are becoming more innovative and more efficient so that we have a long-term, sustainable role in providing the energy the world needs.

We are focused on reducing emissions from our operations and our progress is tracked and presented in our Performance Data Chart. We’ve made great progress over the years, and I’m proud to announce that EnLink achieved our scope 1 methane emissions intensity target for 2024, reducing our scope 1 methane emissions intensity by 30% between 2020 and 2024.

Our emissions reduction strategy is focused on three things:

  • Continuing to reduce our methane emissions intensity through continuous operational improvements and technologies that are both economical and help us operate more efficiently;
  • Reducing our CO₂e emissions intensity through operational efficiencies and the use of existing technologies, like carbon capture which we have already implemented at our Bridgeport Processing Plant, and through emerging technologies that may in the future allow us to decarbonize our operations in an economically responsible manner; and
  • Helping other energy companies and industries to decarbonize their operations through our Carbon Solutions business, which utilizes midstream infrastructure to move CO₂ from third parties’ industrial facilities to permanent sequestration sites. While not reducing EnLink’s own emissions, this effort has the potential to make a much bigger impact by reducing emissions across industrial areas along Louisiana’s Gulf Coast.²

You can read about our emissions reduction strategy and achievements here, as well as additional details on our commitment to operate safely and responsibly and our overall sustainability throughout this report.

As I alluded to at the start of this letter, EnLink’s vision is to “become the future of midstream by leading in innovation and creating sustainable value.” We are well on the path to achieving this vision, which includes embracing our role in the energy transformation, operating safely and responsibly, valuing and supporting our employees and the communities in which we operate, and continuing our strong, ethical business practices.

This report is a reflection of the progress made in 2023, and, while I’m proud of the EnLink team for what has been accomplished, I’m also looking forward to what’s next on the horizon. EnLink is the future of midstream, and the future looks bright.

Thank you for your interest in our journey.

Sincerely,

Jesse Arenivas
President and Chief Executive Officer
EnLink Midstream

  1. IEA (2020), CCUS in Clean Energy Transitions, IEA, Paris (https://www.iea.org/reports/ccus-in-clean-energy-transitions).
  2. According to the U.S. Environmental Protection Agency’s Greenhouse Gas Reporting Program 2021, Louisiana is the second largest industrial CO2 emitting state in the United States with approximately 135 metric tonnes per year.

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The information and data (collectively, “Information”) provided in EnLink’s 2023 Sustainability Report (“Report”) reflects content as of and for the period ending December 31, 2023, unless otherwise indicated. Such Information in this Report is for informational purposes only. EnLink does not make, and hereby expressly disclaims, any representation or warranty as to the accuracy or completeness of the Information contained herein. This Report is being published on August 6, 2024, and EnLink undertakes no obligation or duty to (1) update or correct the Information, (2) provide additional details regarding the Information, or (3) continue to provide the Information, in any form, in the future. EnLink reserves the right, in its sole discretion, to modify, update, change, delete, or supplement the Information from time to time without notice. The Information should not be interpreted as any form of guaranty or assurance of future results or trends. EnLink is expressly not incorporating by reference any of the Information into any filing of EnLink made with the United States Securities and Exchange Commission or in any other filing, report, application, or statement made by EnLink to any federal, state, or local governmental authority. This Report contains information based upon EnLink’s role in the broader economy, environment, and society and is presented for the purpose of responding to issues that are important to a wide range of interested parties. While events, scenarios, and efforts discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality pertaining to disclosures required under U.S. federal securities laws, which have distinct and specific concepts of materiality.