International Comparisons of the Experience of Deregulation and Restructuring of Natural Gas Transmission Industries

In many industrialized countries with mature gas pipeline systems, natural gas deregulation continues to change the structure of their gas transmission industries. This study identifies the general characteristics of such structural changes, and compares the experience of deregulation and restructuring in the United States, European Union, Canada, Australia, and Russia. The United States and European Union gas transmission industries are examined in relatively greater detail. The study shows that the unbundling of transmission networks, and the range of consumer choice and price levels, all reflect the state of competition that varies widely among these countries. On one extreme, is the most deregulated, radically restructured and very competitive United States natural gas transmission industry, and on the other end, the Russian Federation with the largest gas reserves in the world has a natural gas transmission industry that continues to operate as a government-controlled monopoly. The Russian gas transmission system efficiency needs to be enhanced and its corporate governance streamlined.