Natural Gas Distribution & Marketing Industry Overview

Excerpt from Natural Gas Distribution & Marketing Report

Companies in this industry operate natural gas distribution systems that serve customer locations, broker the sale of gas to distributors, and buy natural gas and directly distribute it to customers. Major companies include Gazprom (headquartered in Russia); Gassco (Norway); GasTerra (Netherlands); GDF SUEZ (France); Centrica (UK); and Sempra Energy and CenterPoint Energy (US), as well as the natural gas distribution subsidiaries of companies such as Dominion Resources and ONEOK (US).

Competitive Landscape

Demand for natural gas is driven by energy use, which in turn is influenced by overall economic activity. The profitability of natural gas distributors depends largely on the efficiency of their operations. Companies that operate multiple distribution networks may enjoy economies of scale in purchasing. The US industry is highly concentrated: the 50 largest companies account for about 90 percent of revenue.

Products, Operations & Technology

Distribution of natural gas directly to consumers accounts for about 55 percent of industry revenue; wholesale distribution and marketing accounts for about 45 percent.