The Natural Gas Distribution industry has performed erratically over the past five years as the shale gas boom resulted in a flood of domestic natural gas production, triggering a collapse in natural gas prices. Industry profitability has remained relatively stable. While low retail prices hurt revenue, low Citygate prices have reduced gas purchase costs for distributors. Over the five years to 2022, natural gas production is projected to slow, while infrastructure investments will boost pipeline and export capacity. Upstream gas extractors are therefore expected to charge higher prices on export markets, while regulatory agencies are set to belatedly raise retail rates. However, natural gas consumption is forecast to fall slightly.
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.
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.