Company: L
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000060086-25-000036
Chunk: 402

Company: LOEWS CORP
Filing Date: 2025-02-11
Form: 10-K
Item: Item 7
Chunk 402
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 Pipelines’ compressor stations at least twice a year, exceeding Environmental Protection Agency (“EPA”) requirements; 

•using optical gas imaging cameras to scan natural gas piping and components at Boardwalk Pipelines’ compressor stations to visualize any leaks in real time;

•installing continuous monitoring emission detection equipment at certain compression stations;

•employing experts in air emissions to develop and monitor efforts in reducing emissions;

•reducing methane emissions vented to the atmosphere from transmission pipeline blowdowns by using existing and portable compression and flaring when feasible;

•installing repair sleeves and composite wraps where appropriate and practical to avoid pipeline blowdowns;

•evaluating software tools to optimize our GHG emissions management system;

•exploring options to replace high-bleed natural gas pneumatic devices with low or zero flow bleed devices; and

•reducing methane emissions from rod packing seals on reciprocating compressors, where appropriate and practical.

However, Boardwalk Pipelines cannot guarantee that it will be able to implement any of the opportunities it may review or explore, or, for any opportunities it chooses to implement, to implement them in their intended manner or within a specific timeframe or across all operational assets.

These new and any future regulations adopted by PHMSA and efforts to reduce GHG emissions are expected to cause Boardwalk Pipelines’ capital and operating costs to increase in 2025 and in future years, may cause Boardwalk Pipelines to experience operational delays and may result in potential adverse impacts to its ability to reliably serve its customers. For more information, see Item 1. Business and Item 1A. Risk Factors of this Report.

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Maintenance costs may be capitalized or expensed, depending on the nature of the activities. For any given reporting period, the mix of projects that Boardwalk Pipelines undertakes will affect the amounts it records as property, plant and equipment on the Consolidated Balance Sheets or recognizes as expenses, which impact earnings. Boardwalk Pipelines began incurring costs to implement the Mega Rule’s requirements in 2021, and based on its current projections, it believes that these costs have stabilized. In 2025, Boardwalk Pipelines expects to spend approximately $504 million to maintain its pipeline systems, comply with regulations and monitor, control and reduce its GHG emissions, of which approximately $203 million is expected to be maintenance capital. In 2024, Boardwalk Pipelines spent $513 million on these matters, of which $202 million was recorded as maintenance capital.

Results of Operations

The