Study: Investors View Natural Gas Utilities as Desirable Investments

News Release July 14, 2022

Washington, D.C./Ottawa, ON – Investors continue to see natural gas utilities as a great investment, according to a new report commissioned by the American Gas Association (AGA) and the Canadian Gas Association (CGA). The value of natural gas local distribution companies (LDCs) to investors is based on the consistency of their return on investment (ROI) and return on equity (ROE).

“Investors receive stability and consistency in their portfolios from natural gas utilities,” said Juan Alvarado, AGA Director, Energy Analysis. “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. This report shows that investors positively view utilities that are proactive in addressing decarbonization and also 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,” said Paul Cheliak, Vice President, Strategy and Delivery at the CGA. “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, conducted by Guidehouse, presents foundational background, analysis, and learnings from qualitative interviews with members of the investment community. The interviews sought to uncover any shifts in attitudes towards natural gas utility investments​, decision-making around investing in natural gas utilities, ​decarbonization opportunities, threats facing natural gas utilities​ and perceptions of the policy and regulatory framework.

The study found that, “Investors are still confident that natural gas utilities have their place in energy transition. Natural gas is still viewed as a low-cost energy resource that currently can’t be easily replaced. Natural gas utilities with a well communicated decarbonization and energy transition plan are generally viewed as a good investment target by the investment community.”

The investors that were interviewed feel that natural gas and natural gas utilities have a solid foundation in North America’s low-emissions economy of the future that will continue to value affordability, resiliency and energy security. 

AGA Media Contact:                                                                       CGA Media Contact:
Jake Rubin                                                                                          Aysha Raad
jrubin@aga.org                                                                                   ARaad@cga.ca

About the Canadian Gas Association
The Canadian Gas Association (CGA) is the voice of Canada’s gaseous energy delivery industry, including natural gas, renewable natural gas (RNG) and hydrogen. CGA membership includes energy distribution and transmission companies, equipment manufacturers, and suppliers of goods and services to the industry. CGA’s utility members are Canadian-owned and active in eight provinces and one territory. CGA members meet 38 per cent of Canada’s energy needs through a network of over 573,000 kilometres of underground infrastructure. The versatility and resiliency of this infrastructure allows it to deliver an ever-changing gas supply mix to over 7.3 million customer locations representing approximately two-thirds of Canadians. CGA members ensure Canadians get the affordable, reliable, clean gaseous energy they want and need. CGA is also working to constantly improve that gaseous energy offering, by driving forward innovation through the Natural Gas Innovation Fund (NGIF).


The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 76 million residential, commercial and industrial natural gas customers in the U.S., of which 95 percent — more than 73 million customers — receive their gas from AGA members. Today, natural gas meets more than thirty percent of the United States' energy needs.