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Texas Gas Service

Texas Gas Service is a regulated natural-gas distribution utility serving customers across Texas.

Last updated August 26, 2026

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Overview

Texas Gas Service is a regulated natural-gas distribution utility and a division of ONE Gas, Inc. It is described as the third-largest natural-gas distribution company in Texas, serving more than 884,000 customers in 127 communities. Its infrastructure includes approximately 10,900 miles of service lines, pipelines, and related distribution assets, and the business employs about 1,000 people. The current Texas Gas Service organization was established in 2003 after ONEOK acquired the Texas assets of Southern Union Company. Those assets were assembled over many decades through the expansion and acquisition activities of Southern Union and its predecessors. Southern Union's Texas utility history began in the far-western part of the state in 1929 and later expanded into markets including El Paso, Austin, the Rio Grande Valley, and other Texas communities. As a result, the Texas Gas Service brand represents both a modern operating structure and a longer regional tradition of gas utility service. Texas Gas Service operates as a regulated utility rather than as a conventional consumer-products brand. Its principal role is to transport and distribute natural gas through local networks, connect customers to the system, maintain distribution infrastructure, support safe and reliable service, and manage customer accounts and billing within the regulatory framework applicable to Texas utilities. Its customer base spans residential, commercial, and other users in the communities within its service territories. A major corporate change occurred in February 2014, when ONEOK separated Texas Gas Service and its other natural-gas distribution businesses, Oklahoma Natural Gas Company and Kansas Gas Service, into the newly formed ONE Gas, Inc. Following that transaction, Texas Gas Service continued operating as a division of ONE Gas. The separation created a dedicated publicly traded natural-gas distribution company while preserving the Texas Gas Service name and its local utility operations. The brand's positioning is therefore based on regulated local utility service, geographic reach, infrastructure reliability, safety, and continuity rather than on product differentiation or lifestyle marketing. Its public importance derives from the essential nature of natural-gas distribution and from its role in serving a large number of Texas communities. The available reference material does not establish a separate headquarters location, standalone stock ticker, or independently listed status for Texas Gas Service.

History

Texas Gas Service's present identity dates from 2003, when ONEOK acquired the Texas assets of Southern Union Company and organized them under the Texas Gas Service name. The business inherited a much older utility footprint. Southern Union had been created in far-west Texas in 1929 and subsequently built or acquired operations in several important Texas regions, including El Paso, Austin, the Rio Grande Valley, and other communities that became part of the Texas Gas Service territory. This historical development explains why Texas Gas Service is both a relatively recent corporate brand and a continuation of longstanding local gas-utility operations. Rather than beginning as a wholly new distribution system in 2003, it brought together established assets, customer relationships, and operating territories that had developed through earlier utility ownership and acquisitions. Over time, these assets formed a substantial Texas distribution network serving communities across geographically diverse parts of the state. In 2003, the acquisition by ONEOK placed the Texas properties within a broader group of natural-gas businesses. For the following decade, Texas Gas Service operated alongside ONEOK's other distribution companies, including Oklahoma Natural Gas Company and Kansas Gas Service. In February 2014, ONEOK spun off Texas Gas Service and those two affiliated distribution businesses into ONE Gas, Inc. The transaction established ONE Gas as a dedicated natural-gas distribution company and made Texas Gas Service one of its principal operating divisions. Under ONE Gas, Texas Gas Service remained a regulated public utility serving Texas customers through local gas-distribution systems. Its operations encompass approximately 10,900 miles of service lines, pipelines, and other distribution properties. The company serves more than 884,000 customers in 127 communities and employs approximately 1,000 people, making it one of the largest gas-distribution utilities in Texas. The brand's historical continuity is consequently central to its identity. Its current corporate structure is rooted in the 2003 ONEOK acquisition and the 2014 formation of ONE Gas, while its operating history reaches back through Southern Union's Texas activities to 1929. The available reference material does not provide a detailed chronology of individual rate cases, infrastructure projects, service innovations, executive appointments, or public controversies. Accordingly, the documented history is best characterized as the evolution of a regional gas utility through asset consolidation, corporate reorganization, and continued regulated operation across Texas.

  • 2014

    Texas Gas Service becomes a ONE Gas division

    [1]

    In February 2014, ONEOK spun off Texas Gas Service, Oklahoma Natural Gas Company, and Kansas Gas Service to create ONE Gas, Inc.

  • 2003

    ONEOK acquires Southern Union's Texas assets

    [1]

    ONEOK purchased Southern Union Company’s Texas assets and formed the modern Texas Gas Service organization from those operations.

  • 1929

    Southern Union established in far-west Texas

    [1]

    Southern Union was created in far-west Texas, establishing the predecessor utility history associated with parts of the later Texas Gas Service network.

Products and positioning

A large, regulated Texas natural-gas utility positioned around dependable local distribution, infrastructure service, safety, and long-term community coverage.

  • Utility service

    Residential natural-gas distribution

    Texas Gas Service distributes natural gas through regulated local networks to residential customers in communities across its Texas service territories. The offering includes access to the distribution system, ongoing network operation, customer service, account administration, and infrastructure maintenance associated with household gas delivery.

  • Utility service

    Commercial natural-gas distribution

    The company provides regulated natural-gas distribution for commercial customers located within its service areas. Commercial delivery relies on the same broad local distribution infrastructure while supporting the account, connection, and operational requirements of businesses and other non-residential users.

  • Utility infrastructure service

    Natural-gas connections and local delivery

    Texas Gas Service operates and maintains service lines, pipelines, and related distribution properties that connect customers to the natural-gas system. This infrastructure function includes local delivery, system operation, service connections, and maintenance across a network reported to total approximately 10,900 miles.

Brand decisions

  • 2014

    Corporate separation into ONE GasStrategy

    Background

    ONEOK owned Texas Gas Service alongside its Oklahoma and Kansas natural-gas distribution businesses. It decided to separate those distribution operations into a dedicated company.

    Action taken

    In February 2014, ONEOK spun off Texas Gas Service and the two other distribution companies to form ONE Gas, Inc., with Texas Gas Service continuing as a division.

    Aftermath

    Texas Gas Service retained its operating identity and Texas service territories under the new ONE Gas corporate structure.

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