Pipeline Transport in the UK - Industry Research Report

Piping hot growth: Sky-high natural gas prices and economy-wide inflation are pushing up revenue in 2023-24

Natural gas reserves in the UK, domestic electricity production and the world prices of natural gas and crude oil significantly influence the performance of pipeline operators. The complex infrastructure of long-distance pipeline transport lends itself to a limited number of operators rather than a host of companies in charge of various sections across different regions. As a result, most companies in the industry operate as monopolies, although bodies like Ofgem and NIAUR tightly regulate them. The National Grid dominates and accounts for the bulk of activity as it owns the gas transmission system in Great Britain. Revenue dove sharply in 2018-19 following Ofgem's decision to remove the National Grid Gas Transmission's Avonmouth pipeline output, requiring the company to refund revenue previously received. The COVID-19 outbreak led to a slump in natural gas demand, causing revenue to dip over 2020-21, although demand rebounded as restrictions eased, limiting the contraction.

Firms in this industry transport gases, liquids, water, slurry and other commodities by pipeline. The industry covers long-distance connections between countries or distribution grids, rather than local supply facilities. Players also operate pump stations.

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 key players and their market shares.