Want to Get Acquired? Own a Pipeline

Another acquisition is rumbling through the pipeline industry with the disclosure today that Plains All American Pipeline is pursing the SemGroup but the SemGroup does not want to be the bride to PAA. SemGroup has another plan. See the full letter at this link.

Moves like this will continue to make the pipeline industry more like the railroad industry: one carrier per region. Pricing pressure could be expected by electricity generators using natural gas. There have been rosy projections for using natural gas for generation in place of coal and nuclear but with the consolidation in the pipeline companies this projection may face some hurdles.

 

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