Thinking of Buying an Oil & Gas Business in Australia? Here Are 3 Vital Questions to Ask

The Australian industrial gas sector, a key part of the oil and gas supply chain, generated $3.6 billion in revenue in 2024, with profit margins averaging 15.1% . Industrial gases like oxygen, nitrogen, hydrogen, and carbon dioxide are essential to industries including healthcare, mining, and manufacturing.

Industry revenue is forecast to grow at 2.2% annually through 2029, reaching $4.0 billion . Growth will be supported by rising demand from hospitals, food processing, and energy transition industries. However, the sector is highly exposed to input costs, international gas prices, and regulatory compliance requirements.

1. Is the Business Financially Sustainable?

Why It Matters

Industrial gas operations are capital-intensive, requiring significant investment in plant, pipelines, and storage facilities. Purchases, particularly energy inputs, account for a large share of operating costs, while revenue is tied to long-term supply contracts with major industrial users .

What to Check

• Profitability benchmarks – Compare performance against the industry’s 15.1% average margin.
  
  

• Capital intensity – Review investment in gas plants, storage, and transport infrastructure.
  
  

• Input costs – Assess exposure to electricity, oil, and imported gases, which can create volatility.
  
  

• Contracts – Examine the stability and duration of supply agreements with key clients.
  
  

2. Does the Market Position Provide Competitive Strength?

Why It Matters

The sector is dominated by multinationals such as BOC, Air Liquide, and Coregas, which benefit from scale and integrated distribution networks . Smaller operators face challenges competing without established supply chains and branding.

Market position depends heavily on the ability to service high-demand industries, maintain reliability, and differentiate through specialty or medical gas offerings.

What to Check

• Customer base – Review whether clients include hospitals, manufacturers, or resource companies with recurring demand.
  
  

• Scale advantage – Assess whether the business has distribution efficiency and access to pipelines or bulk transport.
  
  

• Specialisation – Determine if the business provides niche gases (e.g., medical oxygen, hydrogen for energy transition) that command higher margins.
  
  

• Geographic reach – Consider whether the business operates nationally or is limited to regional contracts.
  
  

3. Is the Business Positioned for Future Growth and Energy Transition?

Why It Matters

Industrial gases are set to play a major role in decarbonisation. Hydrogen demand is expected to expand as Australia develops green hydrogen for export, while carbon capture and storage projects will require significant volumes of industrial gases .

Businesses aligned with sustainability and innovation will be best positioned for long-term opportunities.

What to Check

• Hydrogen projects – Review whether the business is engaged in hydrogen production or supply chain opportunities.
  
  

• Sustainability – Assess alignment with renewable energy and emissions reduction targets.
  
  

• Technology adoption – Ensure investment in advanced gas separation and distribution technologies.
  
  

• Regulatory compliance – Verify adherence to safety, environmental, and industrial standards.
  
  

Ready to Invest in a Thriving Oil & Gas Business?

With strong demand across healthcare, mining, and manufacturing—and new opportunities from hydrogen and decarbonisation—the industrial gas sector offers long-term potential.

Success will depend on financial resilience, secure contracts, and alignment with Australia’s energy transition.

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