Steady flow: Infrastructure investments will boost pipeline and export capacity

The Natural Gas Distribution industry has performed erratically over the past five years. Revenue declined significantly in 2012, in line with the shale gas boom, which resulted in a flood of domestic natural gas production. When combined with a shortage of pipeline infrastructure and export facilities, this triggered a collapse in natural gas prices. The economic significance of natural gas has grown over the past decade, with manufacturers and electricity utilities relying increasingly on natural gas as an energy source due to declining prices. Over the five years to 2022, natural gas production is projected to slow, while infrastructure investments will boost pipeline and export capacity...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • While low retail prices hurt revenue, low citygate prices have reduced gas purchase costs for distributors
  • The large growth in natural gas production has led to a substantial decline in natural gas prices
  • Domestic natural gas prices are anticipated to steadily grow to converge with higher world prices
  • Industry Report - Starting a New Business Chapter

    There are a number of barriers to entry into the Natural Gas Distribution industry. A major barrier to entry is posed by the large sums of capital and considerable expertise required to successfully establish an enterprise. Regulatory requirements at both the federal and state level can deter would be industry participants, requiring industry specific expertise and knowledge of industry structure. In addition, entry into certain states' natural gas distribution markets is limited to existing companies, at least for some categories of customer...purchase to read more.

    Additional Insights for the Natural Gas Distribution Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Natural Gas Distribution Industry are

  • Ability to negotiate successfully with regulators
  • Supply contracts in place for key inputs
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Price of natural gas and Electric power consumption in the Natural Gas Distribution industry impact industry performance..

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    What's in this report

    What is the Natural Gas Distribution Industry?

    The majority of companies in this industry manage gas distribution systems consisting primarily of gas mains and meters that transport gas to end users. Other companies are gas marketers that buy gas directly from the well and sell it to a distribution system, while others still are gas brokers or agents that arrange for gas to be sold via distribution systems operated by other companies.

    Industry Products
  • Natural gas distribution
  • Natural gas marketing and brokering
  • Industry Activities
  • Operating gas distribution systems (e.g. mains and meters)
  • Buying gas from a well and selling it to a distribution system
  • Acting as gas brokers or agents that arrange the sale of gas over gas distribution systems
  • Transmitting and distributing gas to final consumers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of natural gas
  • Electric power consumption
  • Industrial production index
  • World price of steaming coal
  • Housing starts
  • Regulation for the Natural Gas Distribution Industry

  • Current Performance
  • Stable profit
  • Structural changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand
  • Growing profit
  • Table: Natural Gas Distribution Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Natural Gas Distribution Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Petrochemical Manufacturing
  • Inorganic Chemical Manufacturing
  • Organic Chemical Manufacturing
  • Coal & Natural Gas Power

  • Key Selling Industries
  • Gas Pipeline Transportation
  • Gasoline & Petroleum Bulk Stations
  • Gasoline & Petroleum Wholesaling
  • Oil & Gas Pipeline Construction
  • Oil Drilling & Gas Extraction

  • Products & Services
  • Natural gas distribution
  • Natural gas marketing and brokering
  • Other
  • Chart: Natural Gas Distribution Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Electric power
  • Industrial
  • Commercial
  • Transportation
  • Chart: Major Market Segmentation for the Natural Gas Distribution Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesDistribution and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Natural Gas Distribution

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Natural Gas Distribution Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Natural Gas Distribution Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Natural Gas Distribution Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Henry Hub Natural Gas Price, $ per mmBtu (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • The point at which major gas transmission pipelines end and gas enters the distributor's system.
  • Distribution Network
  • A system of pipes used to transport natural gas from the citygate to customers.
  • Henry Hub
  • An important natural gas pipeline in Erath, LA that serves as the benchmark for North American natural gas prices.
  • Liquefied Natural Gas (Lng)
  • Natural gas that has been cooled to a very low temperature until it becomes liquid. Used to transport natural gas via tanker overseas.
  • Mercaptan
  • A colorless yet foul-smelling gas that is added to natural gas to help determine when a leak has occurred.
  • Natural Gas
  • A naturally occurring gas that consists of 50.0% to 90.0% methane and small amounts of heavier hydrocarbons such as propane and butane.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Natural Gas Distribution is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Natural Gas Distribution:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Natural Gas Distribution market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Natural Gas Distribution, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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