Natural Gas Pipelines

Natural Gas Pipelines

Brief Excerpt from Industry Overview Chapter:

Companies in this industry own and operate pipelines that transport natural gas from process plants to local distribution systems. Major companies include Energy Transfer Partners, Enterprise Products Partners, Kinder Morgan, and ONEOK (all based in the US), as well as Australian Pipeliner, Gazprom (Russia), and TC Energy (Canada).

COMPETITIVE LANDSCAPE

Demand is driven by economic activity and population growth, which drive energy use. Profitability depends largely on the efficiency of operations. Companies that operate multiple pipeline networks may enjoy economies of scale in purchasing and administrative costs. The US industry is highly concentrated: the eight largest companies account for about 70% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Leading services in the industry include crude oil transportation and natural gas distribution and support services. Other pipeline transportation accounts for the remaining.