Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 687

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 687
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 benefit from these developing trends.

Opportunities in our Pipeline Infrastructure Segment

We are one of the largest pipeline contractors in North America, with a balanced portfolio of service offerings, including union and non-union services.  Our pipeline offerings include construction and maintenance services for pipeline distribution, including for natural gas, water and carbon capture sequestration pipelines and pipeline integrity services for the energy and utilities industries.  Our pipeline integrity services include replacement and repair of pipeline infrastructure, facilitating their safe use throughout their lifecycle.

Notwithstanding efforts to reduce reliance on fossil fuel-related energy sources and transition to renewable sources, we expect that natural gas power generation will remain a fuel of choice, both for primary power generation, and for baseload backup power generation to support intermittent clean energy sources.  According to the latest DOE’s Annual Energy Outlook 2023, natural gas is expected to approximate 20% of U.S. electricity generation in 2050, the second largest source behind renewable technologies.  Further, according to an HFI Research April 2024 publication, natural gas power generation is expected to grow 14% per year through 2030 as a result of increasing load growth.  A November 2024 S&P Global Community Insights article indicates that natural gas is expected to remain a critical energy source for some time, especially with the need to fill capacity gaps, which cannot presently be met entirely by renewables.  In addition, our pipeline infrastructure related services could see increased demand from policies adopted by the new federal administration that support or encourage exploration for and export of oil and gas products.   

In addition, demand for liquefied natural gas (“LNG”) exports has risen in recent years and North American export capacity is on track to more than double between 2024 and 2028, according to a December 2024 publication by the U.S. Energy Information Administration.  The DOE announced in January 2024 a pause in the issuance of new LNG project permits in order to address certain environmental and other concerns, however, in January 2025, the new presidential administration issued an executive order to resume processing of export permit applications for LNG projects in an effort to raise U.S. energy output.  As a result, we expect there will be continued demand for construction of pipeline infrastructure for the transport of LNG to coastal export facilities over the next few years.  Additionally, we believe that gas utility distribution spending for replacement and rehabilitation of aging infrastructure will accelerate over the next several years due to regulatory, sustainability and safety concerns.  

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Similarly, we