Bangor Gas SWOT Analysis, USP & Competitors

Bangor Gas

Parent Company

Energy West

Category

Energy and utilities

Sector

Energy

USP

Cost efficient, safe and reliable natural gas

STP

Segment

Natural Gas requirements

Target Group

Residential and business

Positioning

Cost efficient, safe and reliable natural gas

SWOT Analysis

Strengths

1. It is a part of Energy West which is a gas and energy utility company having 36,000 customers in Montana, Wyoming, North Carolina and Maine. Association with it provides them with expertise.
2. Energy West is a wholly owned subsidiary of Gas Natural Inc. which has a customer base of 68,000 and distributes 26 billion cubic foot of natural gas.
3. It has strong pipeline system which contains Loring Pipeline which is 189 mile long pipeline from Searsport to Limestone, Marine.
4. Its pipeline is made of high-strength welded steel and can withstand up to 400 psi pressure. This enables them to provide reliable service. They also employ DigSafe program and periodic patrols to monitor and protect their pipelines.
5. By utilizing the benefits of natural gas which are cost efficiency, clean and reliability, it has been able to switch 1000+ people per year to natural gas in Maine.

Weaknesses

1. The margin in natural gas has declined due to low price of natural gas which is caused by abundance of shale resources and efficient production. 
2. Its operations are concentrated only in several communities which include Bangor, Old Town, Orono, Veazie etc. in Maine and this geographic concentration creates a risk for the company.
3. It does not generate natural gas and relies on gas suppliers (primary one is Emera Energy Service) and receives gas supply from Maritime and Northwest Pipeline transmission systems. This creates the risk of low margin and creates dependability on primary supplier.
4. The operations are mostly limited to natural gas and thus it adds risk to their business.

Opportunities

1. There is increase in demand for natural gas and that creates huge opportunity for Bangor Gas.
2. Opportunity lies in investment into new projects which can help the company to expand its operations.
3. Growth opportunity lies in investment in storage and pipeline infrastructure.
4. Maine is an emerging natural gas markets and this creates opportunity for Bangor Gas.

Threats

1.  Natural gas industry is highly dependent on weather as natural gas is widely used in home heating systems. So, unfavorable weather has adverse effects on the business.
2. There exist threats from other fuel sources such as wood, electric landfill gas, oil and propane.
3. This industry is under the purview of various environmental laws and regulations and this creates a risk for the business as any unfavorable policy can harm business.

Competition

Competitors

1. Northern Utilities Inc.
2. Maine Natural Gas