Natural Gas Distribution in the US - Industry Market Research Report

Down the Pipeline: The Price of Natural Gas is Expected to Fall, Hampering Industry Expansion

Operators in the Natural Gas Distribution industry are generally responsible for either maintaining natural gas distribution systems that connect residential, industrial and commercial users downstream a citygate or arranging sales to end markets over industry-specific networks. The industry has largely benefited from the enormous outburst of natural gas availability that has occurred in the United States since the early 2000s as a result of the growing prevalence of advanced drilling techniques employed by upstream producers in the Oil Drilling and Gas Extraction industry (report 21111). Natural gas is used to generate electricity, produce useful thermal output and as an industrial feedstock. Many end users, particularly electric power plants, have been pressed to transition to using this energy source at the expense of others, such as coal, due to its increased affordability and comparatively lower environmental impact. As a result, industry revenue is expected to grow at a CAGR of 3.2% to $216.9 billion over the next five years, including a decline of 8.7% in 2023 alone.

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 are gas brokers or agents that arrange for gas to be sold via distribution systems operated by other companies.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.