In this article, we will take a look at the 5 biggest natural gas pipeline companies in the world. If you want to see more companies in this selection, go to the 15 Biggest Natural Gas Pipeline Companies in the World.
5. Gazprom
Revenue 2021: $138.28B
Gazprom is a Saint Petersburg, Russia-based state-owned diversified energy company that is primarily responsible for the 93,000 km of natural gas pipelines running across Russia. Russia has the second most extensive natural gas pipeline network in the world. Gazprom has a monopoly over the export of natural gas through the pipeline in Russia.
The company has been playing an important role in fulfilling the natural gas needs of the European Union (EU) through its pipeline. However, Gazprom has seen a drastic decline in demand for natural gas following the start of the conflict between Russia and Ukraine in February 2022. According to Gazprom CEO Alexei Miller, natural gas exports from Russia have observed a 45% YoY decline to 100.9 billion cubic meters (bcm) in 2022.
4. Chevron Corporation (NYSE:CVX)
Revenue 2021: $162.47B
Chevron Corporation (NYSE:CVX) is a San Ramon, California-based energy corporation. The company is involved in all aspects of the oil and gas value chain, from exploration and drilling to pipeline transportation and marketing of oil and gas products.
In 2021, the company raised its quarterly dividend per share by 4% and lowered the net debt ratio to 15.6% from 22.7%. Furthermore, Chevron Corporation (NYSE:CVX) repurchased its stock worth $1.4 billion. The company is prioritizing initiatives that are anticipated to result in the greatest decrease in carbon emissions at the lowest possible cost.
Here’s what Madison Funds said about Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter:
“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.
Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)
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3. Saudi Arabian Oil Company (TADAWUL:2222.SR)
Revenue 2021: $359.46B
Saudi Arabian Oil Company (TADAWUL:2222.SR) is a publicly traded Saudi Arabian oil and gas company with its headquarters in Dhahran. The company is at the third position on our list of the biggest natural gas pipeline companies in the world.
Saudi Arabian Oil Company (TADAWUL:2222.SR) started building its Master Gas System (MGS), a vast network of pipelines that links gas production and processing facilities around the Kingdom, in 1975. Since its founding more than 40 years ago, it has served as the foundation of Saudi Arabia’s industrial network for economic growth and diversification. The company has increased its gas processing capacity by around 16 billion standard cubic feet per day (scfd) between 2000 and 2022.
2. PetroChina
Revenue 2021: $404.61B
PetroChina is a Beijing-based oil and gas company. The company is a subsidiary of China National Petroleum Corporation (CNPC).
Higher global energy prices helped Asia’s largest oil and gas producer, PetroChina Co Ltd, post a 60% year-over-year increase in nine-month net profit despite the lower domestic fuel demand hurting earnings. PetroChina’s net profit from January to September 2022 was 120.3 billion yuan ($16.66 billion). The company intends to increase its natural gas production to account for 55% of total output by 2025.
1. China National Petroleum Corporation (CNPC)
Revenue 2021: $411.7B
China National Petroleum Corporation (CNPC) is a Beijing, China-based integrated energy company.
In 2021, the state-owned energy corporation made $9.6 billion in profit, an increase of 111% from 2020, when factories in China were closed due to the pandemic. Revenue for China National Petroleum Corporation in 2021 was $411.7 billion, up 45% from the previous year.
Since 2014, the company also has had a $400 billion partnership with Gazprom that aims to deliver 38 billion cubic meters of natural gas annually from Russia to China for 30 years. In extension to the same partnership, the East Route natural gas pipeline is expected to be operational from 2024 onwards. This will make up for some of the loss of natural gas supply by Gazprom to the European market. Under the terms of the agreement, payments can be made in either the Chinese yuan or the Russian ruble. It must be noted that China is the biggest natural gas importer in the world. The country’s 50% demand for natural gas is fulfilled via imports as it is heavily focused on lowering its carbon footprint by switching from coal.
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