Enterprise Products Partners is a publicly listed midstream oil and gas company headquartered in the USA. In 2020, it had USD 27.20 billion in revenue and a reported 7,130 employees*. Enterprise Products has no strategy to transition to the low-carbon economy and holds the view that all hydrocarbons have a long-term role to play in energy consumption.
Enterprise Products needs to conduct climate scenario analysis to inform a plan to reduce its total scope 1, 2 and 3 emissions impact, most importantly, the emissions from the combustion of its pipeline throughputs. It has stated its intention to reduce scope 1 and 2 emissions but has not shared a detailed, road map with financial commitments to achieve this.
Compliance with regulations is not enough to put the company on a 1.5°C pathway. It needs to set company-level emissions reduction targets to keep its management accountable for the company’s the low-carbon transition. It also needs to replace the direct and indirect incentives for fossil fuel product growth with renumeration focused on emissions reductions and increasing low-carbon product revenue.
Enterprise Products should establish strategies and action initiatives for engagement with its suppliers and clients to stimulate emissions reductions throughout the entire energy value chain. As a midstream oil and gas transportation company, it should use its purchasing power, through contract clauses and sales incentives, to engage its suppliers in emissions reductions programs.
Enterprise Products has a fundamental view that all hydrocarbons have a role to play in energy consumption far into the future, and this steers its engagement with policymakers. The company advocates for environmental and safety initiatives, pipeline security, and best practices involving pipeline construction and engagement with landowners. However, it should also use its influence to support climate policy to limit greenhouse gas emissions. Further, it should establish an engagement policy outlining measures to be taken when trade associations it is a member of oppose climate policy. The company is currently a member of the American Fuel & Petrochemical Manufacturers (AFPM), the American Petroleum Institute (API) and the Texas Oil and Gas Association, all of which have opposed climate policy.
Enterprise Products receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. It has not set itself specific targets for emissions reduction and has not shared information to indicate that it has plans to increase spending on low-carbon or carbon removal technologies. It also has no strategies or actions in place to engage suppliers or customers in emissions reduction initiatives.
Enterprise Products reports that it plans to reduce the emissions intensity of its operations. However, it has not set any specific targets for these emissions reductions and it has not made any plans to transition away from fossil fuel products.
Enterprise Products reports that it will increase its use of renewable energy and support carbon capture and storage (CCS) development. In addition, it will increase capture and liquification of vapours to reduce flaring, install lower-emitting equipment when upgrading assets, invest in technologically advanced control equipment, and eliminate or minimize waste streams.
Enterprise Products’ absolute emissions are increasing as it is increasing its volumes of refined and processed oil and gas products. It does not disclose on its CapEx or R&D expenditure in low-carbon and mitigation technologies.
Enterprise Products reports that since 2011, its total petrochemicals facility volumes have increased by 65%, total natural gas liquids (NGL) fractionation volumes by 23%, total liquids pipeline volumes by 65%, and total fee-based processing volumes by 108%. This expansion is accompanied by an increase of 17% in the company’s scope 1 emissions from 2011 to 2019.
Enterprise Products shares very little detail on its low-carbon transition plan and investments. It continues to incentivise its executives to expand fossil fuel infrastructure. This approach is not at all consistent with the changes needed for the company to align with a low-carbon economy and its 1.5°C pathway.