What Are the Segments of the Natural Gas Industry?
The natural gas industry is divided into three major segments:
The production segment searches for, locates and drills natural gas (sometime in association with oil). It purifies the gas and collects it through gathering lines which come together to deliver the gas to the next segment – transmission.
The transmission segment transports large quantities of gas to the areas where the gas is consumed. Transmission may also include storage facilities.
Gas is then delivered to the distribution segment where gas is delivered from the interstate pipelines to individual customers. Distribution companies may also have storage and/or peak shaving facilities.
|Economic and Siting Regulation|
|Unregulated or State regulation||Unregulated or State regulation||Federal Energy Regulatory Agency (FERC)||State regulation|
|Unregulated or State regulation||Unregulated, State or federal regulation||Pipeline and Hazardous Materials Safety Administration Office of Pipeline Safety||State regulation|
Content last updated March 2022