Abstract
This paper examines a structural change in the natural gas industry that would lead to significant economies of cost and reliability, namely gas pooling arrangements among pipeline companies. In order that gas pooling he able to confer economic benefits, it must be practicable and workable. The study indicates that this is the situation. In addition, gas pooling confers substantial benefits on the participants. An analysis of spocific beneits is undertaken. These benefits are then compared with the disincentives to horizontal integration of the industry. The conclusion of the study is that thoughtful and consistent regulatory policies to encourage gas pooling are in the public interest.
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