In this article, we will discuss the 15 Largest Pipeline Companies in the World.
Global Energy Monitor estimates that as of December 2020, there were at least 2,381 active oil and gas pipelines spread over 162 nations. The total length of these pipes exceeds 1.18 million km, which is enough to circle the Earth 30 times. The pipeline sector is part of the “midstream” oil industry, and according to Mordor Intelligence, it is forecasted to register a CAGR of more than 6.5% by 2027.
Global Data claims that Asia will lead the world in terms of pipeline length expansion, adding 58,021 km to its oil and gas pipeline network by 2026. North America and Europe come in second and third, with pipeline lengths forecasted to be 20,022 km and 17,151 km, respectively, by 2026. The growth in pipeline length does not mean that the sector is not facing any challenges. The anti-pipeline movement poses the most serious threat to pipeline firms. The movement is against the pipeline industry due to the negative effects of carbon fuels on the environment. The movement is gaining traction, from the protests against Energy Transfer’s Dakota Access Pipeline in 2016 to the more recent protests against the construction of the East African Crude Oil Pipeline in 2022. Reacting to the trend, many of the large pipeline firms have begun to create clean energy portfolios. These include Canada’s biggest pipeline company, Enbridge Inc. (NYSE:ENB), which has been expanding its offshore wind portfolio.
Pipeline in industrial district
Last year, the pipeline industry was thrust under the spotlight as a result of the Russia-Ukraine crisis. Russia is Europe’s principal supplier of natural gas. Russia supplied 45% of the EU’s natural gas imports in 2021. The Russian SOE and its largest pipeline company, Gazprom, operates the majority of the gas pipelines, including Nord Stream. An episode of pipeline politics followed in February 2022 when Germany stopped the certification process for Nord Stream 2. This gas pipeline was designed to double the flow of Russian gas to Germany, so its closure has the potential to create significant losses for Russia.
In September 2022, a series of explosives damaged at least 50 meters of the Nord Stream pipeline. Gazprom had cut off gas supplies prior to the attack, citing technical problems, but after the attack, the west accused Russia of organizing the bombings.
In such challenging times, marked by concerns over war and climate change, it will be interesting to observe how these pipeline behemoths retain their growth.
Our Methodology
To come up with the 15 largest pipeline companies in the world, we compiled a list of the biggest global diversified oil and gas energy companies with the largest network of pipelines. We then proceeded to rank these companies in order of their market cap. For private companies, we have used a revenue multiple of 1.5x to come up with the estimated market value, which we think is a fair multiple for the industry.
Largest Pipeline Companies in the World
15. Transneft (TRNFP.ME)
Market Cap as of February 10, 2023: $12.2 billion
Transneft (TRNFP.ME) is a state-controlled oil-pipeline transport company listed on the Moscow Stock Exchange. More than 80% of all oil produced in Russia is delivered through Transneft (TRNFP.ME)’s network. Transneft (TRNFP.ME)’s pipeline network includes the Russian portion of the 5500-kilometer-long Druzhba Pipeline, one of the world’s largest crude oil pipeline networks. Transneft (TRNFP.ME) also runs the Eastern Siberia-Pacific Ocean oil pipeline, which transports Russian crude oil to Asia-Pacific markets. In addition, the corporation operates the Baltic Pipeline System (BPS) and is a shareholder in the Caspian Pipeline Consortium (CPC).
14 Targa Resources Corp. (NYSE:TRGP)
Market Cap as of February 10, 2023: $16.8 billion
Targa Resources Corp. (NYSE:TRGP) is a provider of midstream energy infrastructure. Its primary business in the United States is the delivery of natural gas and natural gas liquids. Targa Resources Corp. (NYSE:TRGP) recently acquired a 25% stake in the Grand Prix NGL Pipeline. This pipeline connects the company’s collection and processing locations in the Permian Basin, North Texas, and Southern Oklahoma to their fractionation and storage plant in Mont Belvieu, Texas, the NGL market hub.
13. Pembina Pipeline Corporation (NYSE:PBA)
Market Cap as of February 10, 2023: $18.8 billion
Pembina Pipeline Corporation (NYSE:PBA) is a Canadian midstream provider listed on the Toronto and New York Stock Exchanges. The company owns and operates approximately 18,000 km of conventional, transmission, oil sands, and heavy oil pipelines throughout North America.
Pembina Pipeline Corporation (NYSE:PBA) has a pipeline transportation capacity of 3.1 mmboe/d, and an above-ground storage capacity of 11 million barrels of oil.
12. Cheniere Energy Partners, L.P. (NYSE:CQP)
Market Cap as of February 10, 2023: $25.3 billion
Cheniere Energy Partners, L.P. (NYSE:CQP) is a midstream energy company that operates LNG-related businesses. Cheniere Energy Partners, L.P. (NYSE:CQP)’s wholly-owned subsidiaries, Cheniere Creole Trail Pipeline, L.P, owns the Creole Trail Pipeline. This bidirectional, 94-mile pipeline connects the Sabine Pass LNG facility with several large interstate pipelines.
Cheniere Energy Partners, L.P. (NYSE:CQP) also owns the Corpus Christi pipeline, which runs 21.5 miles and connects the Corpus Christi Liquefaction complex to several interstate and intrastate pipelines. The 200-mile Midship pipeline is owned by Midship Pipeline Company, LLC, a company in which Cheniere Energy Partners, L.P. (NYSE:CQP) has an equity stake.
11. Berkshire Hathaway Energy
Estimated Market Value: $37.65 billion
Annual Revenue 2021: $25.1 billion
Headquartered in Iowa, United States, Berkshire Hathaway Energy is a holding company that offers energy generation services through its subsidiaries. The company utilizes various fuel sources for electricity generation, such as Coal, Natural Gas, Steam, and Nuclear, as well as other renewable energy sources such as Wind, Geothermal, Solar, and Black Liquor resources. Berkshire Hathaway Energy also offers gas transmission and storage services. In the year 2021, Berkshire Hathaway Energy Pipeline Group, along with its subsidiaries, transported around 15% of the total gas utilized in the United States. The company has a pipeline network of over 21,000 miles.
10. The Williams Companies, Inc. (NYSE:WMB)
Market Cap as of February 10, 2023: $38.1 billion
The Williams Companies, Inc. (NYSE:WMB) is an NYSE-listed American energy infrastructure company. The Williams Companies, Inc. (NYSE:WMB) transports 30% of the natural gas in the United States.
Transco, a natural gas pipeline stretching from Pennsylvania to Texas, and Northwest Pipeline, an interstate bi-directional natural gas pipeline and storage facility, are both owned by The Williams Companies, Inc. (NYSE:WMB).
9. Energy Transfer LP (NYSE:ET)
Market Cap as of February 10, 2023: $39.4 billion
Energy Transfer LP (NYSE:ET) transports almost one-third of the United States’ petroleum and natural gas. Energy Transfer LP (NYSE:ET) directly owns and operates approximately 19,830 miles of interstate natural gas pipelines and another 7,070 miles through joint venture interests, with the Panhandle Eastern Pipe Line being the longest. The company’s pipelines can transport natural gas from nearly 48 onshore and offshore supply basins to clients in the Southeast, Gulf Coast, Southwest, Midwest, Northeast, and Canada.
8. Kinder Morgan, Inc. (NYSE:KMI)
Market Cap as of February 10, 2023: $40.7 billion
Kinder Morgan, Inc. (NYSE:KMI) is one of North America’s leading energy infrastructure firms. The company’s pipeline network stretches over 83,000 miles, transmitting approximately 40% of the natural gas produced in the USA. Kinder Morgan, Inc. (NYSE:KMI) employs around 11,000 people in North America.
Kinder Morgan, Inc. (NYSE:KMI) has also ventured into clean energy by forming the Energy Transition Ventures group in 2021. The company has also acquired Kinetrex Energy, entering the landfill-based Renewable Natural Gas (RNG) business.
7. TC Energy Corporation (NYSE:TRP)
Market Cap as of February 10, 2023: $41.6 billion
TC Energy Corporation (NYSE:TRP) operates a 93,300-kilometer network of natural gas pipelines. The company’s 4900-kilometer-long crude oil pipeline network connects Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the US Gulf Coast.
TC Energy Corporation (NYSE:TRP) intends to lower the intensity of GHG emissions from its operations by 30% by 2030. To achieve this goal, TC Energy Corporation (NYSE:TRP) has entered into two agreements to investigate the possibility of co-developing large-scale hydrogen hubs.
6. Marathon Petroleum Corporation (NYSE:MPC)
Market Cap as of February 10, 2023: $54.8 billion
Founded in 2009, Marathon Petroleum Corporation (NYSE:MPC) is an independent refiner that operates as a downstream energy company. Marathon Petroleum Corporation (NYSE:MPC) has 13 refineries throughout the United States, with a total daily throughput capacity of 2.9 million barrels. The company’s operating segments include Refining, Marketing, and Midstream segments. Marathon Petroleum Corporation (NYSE:MPC) has a pipeline network of approximately 14,000 miles in length which includes around 8,000 miles of crude oil pipeline system and over 5,500 miles of pipeline system for refined products.
5. Gazprom (GAZP.ME)
Market Cap as of February 10, 2023: $63.7 billion
Gazprom (GAZP.ME) is a state-owned, vertically integrated company involved in all parts of the natural gas value chain, including its exploration, production, transportation, storage, processing, and sales. In 2021 Gazprom (GAZP.ME) accounted for 12 percent of the world’s natural gas production and owned 178,200 kilometers of natural gas trunk pipelines and pipeline branches.
In addition to transporting gas to Russia’s most remote locations, Gazprom (GAZP.ME) has pipelines that reach Europe. It distributes natural gas to Turkey via the 1213-kilometer-long Blue Stream and the 930-kilometer-long Turk Stream. Gazprom (GAZP.ME) is also a shareholder in the 1224-kilometer Nord Stream pipeline, which connects Russian supplies to Europe. Its 2000-kilometer-long Yamal – Europe gas pipeline connects Russian gas supplies to western Europe.
4. Enterprise Products Partners L.P. (NYSE:EPD)
Market Cap as of February 10, 2023: $56.1 billion
Enterprise Products Partners L.P. (NYSE:EPD) is an American midstream company. Enterprise Products Partners L.P. (NYSE:EPD)’s NGL pipelines spread over a length of 19,803 miles, with the Mid-America Pipeline System being the longest. The company’s NGL segment also operates processing plants, marine terminals, and fractionation and storage facilities. Enterprise Products Partners L.P. (NYSE:EPD)’s crude oil pipeline network is primarily located in Texas and spans 5,737 miles, with a total operational storage capacity of 31.2 million barrels.
3. Enbridge Inc. (NYSE:ENB)
Market Cap as of February 10, 2023: $79.6 billion
Headquartered in Calgary, Canada, Enbridge Inc. (NYSE:ENB) is a large energy and pipeline company employing about 12,000 people.
Enbridge Inc. (NYSE:ENB)’s pipelines transport almost 30% of North America’s crude oil and nearly 20% of the natural gas consumed in the US. Enbridge Inc. (NYSE:ENB) is expanding its offshore wind portfolio. In 2018, Enbridge Inc. (NYSE:ENB) was designated one of the Thomson Reuters Top 100 Global Energy Leaders.
2. China National Petroleum Corporation
Estimated Market Value: $412 billion
Annual Revenue 2021: 2,807.3 RMB billion
China National Petroleum Corporation is a national and major oil and gas company in China. The company engages in the exploration, refining, and marketing of oil and its products, such as kerosenes, lube oils, diesel oils, chemical light oils, etc. China National Petroleum Corporation has a pipeline network of approximately 25,000 km which includes a crude oil pipeline network of over 7,000 km and natural gas pipeline network of around 17,000 km.
1. Saudi Arabian Oil Company (2222.SR)
Market Cap: $1.9 trillion
Founded in 1933, Saudi Arabian Oil Company (2222.SR) is the national oil company of Saudi Arabia. The company is the sole entity authorized to explore, produce, and process hydrocarbons in the country. The upstream segment of the company explores, produces, and markets crude oil and other products like natural gas, and natural gas liquids (NGLs), while the downstream segment produces petrochemicals and offers refining, retailing, storage, supply, and transportation services. In the fiscal year 2021, Saudi Arabian Oil Company (2222.SR) stood as the world’s largest oil company, with a daily production of 9.2 million barrels of crude oil. Additionally, the company also owns and operates a 12,000-mile pipeline network that connects the production fields to export terminals, processing plants, and consumption hubs.
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Disclosure: None. 15 Largest Pipeline Companies in the World is originally published on Insider Monkey.
