Refined Petroleum Pipelines

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate pipeline networks for transporting refined petroleum products. Major companies include Buckeye Partners, Kinder Morgan, Koch Industries, and Magellan Midstream Partners (all based in the US), along with China National Petroleum Corporation (China), Saudi Aramco (Saudi Arabia), TC Energy (Canada), and Transneft (Russia).

COMPETITIVE LANDSCAPE

Demand is driven by economic activity and population growth, which drive energy use. The profitability of pipeline transporters depends largely on the volume and efficiency of their operations. Companies that operate multiple pipeline networks may enjoy economies of scale in purchasing. The US industry is highly concentrated: the 20 largest companies account for over 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are transportation of refined petroleum products, including gasoline, diesel, jet fuel, and heating oil, as well as liquefied petroleum gas (LPG) and natural gas liquids (NGLs). Other services include operating booster pumping stations. Many refined petroleum product pipeline operators also own pipelines for transporting crude oil.