7.6.3Segment

Natural Gas Pipelines & Compression

Natural gas pipeline operators, gathering and processing companies, and compression service providers.

4
Verticals

Overview

Natural Gas Pipelines & Compression covers the interstate and intrastate pipelines, compression, and transmission that move natural gas from producing regions to markets, utilities, power plants, and LNG terminals. At ~$38B in pipeline-transportation revenue it is a consolidated, fee-based infrastructure business led by midstream majors (Kinder Morgan, Williams, Energy Transfer, TC Energy).

Demand is driven by gas consumption, power generation, LNG-export feed gas, and the data-center load growth reshaping gas demand, with pipelines earning steady, toll-like, often contracted revenue. It is consolidated, capital-intensive, and prized as recurring-revenue infrastructure, though new pipeline build-out faces permitting and opposition challenges. It is a core infrastructure-investment asset.

Market snapshot

Market size
~$38B
Growth
~6.9%CAGR (2017–22, nominal)
Companies
~2,000
FragmentationConsolidated

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 486210 (pipeline transportation of natural gas) — fee-based transportation revenue (distinct from the value of the gas itself).

Business model & economics

Revenue model
Pipeline transportation and capacity fees (toll-like)
Recurring revenue
High — contracted, toll-like transportation fees
EBITDA margin
Strong — stable, fee-based infrastructure
Capex intensity
High
  • Fee-based, toll-like infrastructure economics.
  • LNG-export feed gas and data-center load drive demand.
  • New build-out faces permitting and opposition.

M&A deal context

High deal activity

Who’s acquiring

Midstream/MLP majorsInfrastructure funds & investorsPipeline consolidators

What’s driving deals

  • Midstream consolidation and MLP simplification.
  • LNG-feed-gas and power-demand pipeline needs.
  • Recurring-fee infrastructure appeal.

Verticals in this segment

  • 7.6.3.1Gas Gathering & Processing

    Midstream companies gathering raw gas and extracting NGLs.

  • 7.6.3.2Interstate Gas Pipeline Operators

    FERC-regulated interstate natural gas pipeline operators.

  • 7.6.3.3Intrastate Gas Pipeline Operators

    State-regulated intrastate natural gas transmission companies.

  • 7.6.3.4Pipeline Compression Services

    Companies providing gas compression services on pipelines.

Find Natural Gas Pipelines & Compression acquisition targets

Search Acquisera’s index for companies classified under Natural Gas Pipelines & Compression (7.6.3) and build a targeted deal pipeline.

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