Natural growth: Enhanced infrastructure and growing prices will benefit industry operators

Despite steady growth in the consumption of natural gas, revenue for the Natural Gas Distribution industry has been volatile over the past five years. As gas prices have declined, government regulatory agencies have lowered the gas rates charged to consumers, cutting sharply into gas distribution revenue. However, the industry is expected to grow strongly over the next five years, although revenue is still expected to be below the industry's precessionary peak. Gas pipeline and processing facilities will undergo steady expansion, thereby stimulating exports and gas prices and gas consumption will also experience moderate growth over the period...read more.

Industry Statistics & Market Size
Revenue
$25bn
Annual Growth 13-18
4.3%
Forecast Growth 18-23
Profit
Employment
17,901
Businesses
156

Industry Threats & Opportunities

  • Expanded infrastructure is expected to grow the industry’s available customer base
  • The shale gas boom quickly resulted in a natural gas supply surplus in North America
  • Industry operators will gain rate hikes for infrastructure investment costs from the past few years
  • Industry Report - Industry Products Chapter

    The Natural Gas Distribution industry in Canada sells natural gas to various downstream customers. Natural gas can be distributed to customers through utility pipeline grids. Downstream operators can also purchase natural gas in bulk on wholesale markets.Utility-distributed natural gasThis industry primarily provides utility-distributed natural gas to industrial, commercial and residential customers. Natural gas is processed and transported to storage facilities and distributed to end-users through pipeline grids. Natural gas is widely used to generate electricity, power appliances and provide heating, resulting in relatively stable demand. As a result, revenue is mostly driven by retail gas rates. Over the five years to 2018, retail rates have increased. As ...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 regulator
  • Access to required utility infrastructure
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as World price of natural gas and Demand from manufacturing 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?

    This industry distributes natural gas to manufacturers, businesses and consumers through utility gas pipelines. Industry establishments are also composed of natural gas marketers, which purchase and sell natural gas on wholesale markets. This industry does not include long-distance gas transportation operators.

    Industry Products
  • Utility-distributed natural gas
  • Natural gas marketing and brokering
  • Industry Activities
  • Utility natural gas distribution
  • Natural gas processing
  • Wholesale natural gas brokering and marketing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of natural gas
  • Demand from manufacturing
  • Housing starts
  • Electric power consumption
  • World price of steaming coal

  • Current Performance
  • Demand conditions
  • Price volatility
  • Regulation limits profitability growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions
  • Revenue growth
  • Industry structure
  • 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 In Canada
  • Petrochemical Manufacturing in Canada
  • Plastic & Resin Manufacturing in Canada
  • Thermal Power in Canada

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

  • Products & Services
  • Utility-distributed natural gas
  • Natural gas marketing and brokering
  • Chart: Natural Gas Distribution Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial
  • Residential
  • Commercial
  • 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
    ProfitPurchasesDepreciationWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Natural Gas Distribution

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

  • Industry Globalization
    Enbridge Gas Distribution, Energir LP,
  • Table: Enbridge Gas Distribution - financial performance
  • Table: Energir LP - financial performance

  • 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World price of natural gas (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Crown Corporation
  • Government-owned for-profit entities. Several provincial utilities are crown corporations.
  • Gas Rate
  • The price that utilities receive from consumers, in exchange for gas distribution. The price is set by provincial government agencies.
  • Liquefied Natural Gas (Lng)
  • Natural gas that is cooled to a very low temperature until it becomes liquid. Used to transport natural gas via tankers overseas.
  • Mercaptan
  • A colourless yet foul-smelling gas that is added to natural gas to help determine when a leak has occurred.
  • Peak Shaving
  • The process where gas distribution utilities use underground storage and alternative supply sources to meets shifts in daily demand. Peak shaving can lower gas transportation costs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Natural Gas Distribution market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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