Refined Petroleum Pipelines Industry Profile

Companies in this industry operate pipeline networks for transporting refined petroleum products. Major companies include Buckeye Partners, Kinder Morgan Energy Partners (KMP), Koch Industries, and Magellan Midstream Partners (all based in the US), along with China National Petroleum Corporation (China), Saudi Aramco (Saudi Arabia), TransCanada (Canada), and Transneft (Russia).

The US refined petroleum pipeline industry includes about 40 companies with annual revenue of about $7 billion.

Transportation of crude oil is covered in the Crude Petroleum Pipelines profile. Refining of crude oil is covered in the Petroleum Refining profile. Recovery of crude oil from wells is covered in the Oil & Gas Exploration & Production industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by economic activity and population growth, which drive energy use. The profitability of pipeline transporters depends largely on the volume and efficiency of their operations. Companies that operate multiple pipeline networks may enjoy economies of scale in purchasing. The US industry is highly concentrated: the four largest companies account for more than half of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are transportation of refined petroleum products, including gasoline, diesel, jet fuel, and heating oil, as well as liquefied petroleum gas (LPG) and natural gas liquids (NGLs). Other services include operating booster pumping stations. Many refined petroleum product pipeline operators also own pipelines for transporting crude oil.

Refined petroleum products are carried in pipelines of various sizes, ranging from 8 inches to 42 inches in diameter. The ...