North American Natural Gas Pipelines: Gas Pipeline Fundamentals Hold Up Despite Slowdown in the Broader Midstream Sector
By Moody’s Investors Services
The complete report, which was published in August 2016, can be found online at http://www.moodys.com
Synopsis: Interstate natural gas pipelines have remained financially sound despite financial challenges across the broader midstream energy infrastructure industry, notes Moody’s. But low oil and gas prices and weakness in the master limited partnership sector have caught the midstream market despite their relative health.
“Demand-pull pipelines have better credit quality because they serve captive markets and benefit from strong offtaker credit profiles,” says Moody’s analyst Lesley Ritter. “Electric and gas utility companies are the most creditworthy counterparties because they use the pipeline to serve their captive customer needs.”