The EU is planning to phase out natural gas sourced from Russia by 2027 due to the ongoing war with Ukraine. Despite being the second largest natural gas producer and exporter globally, Russia’s market share in the EU decreased significantly from 45% in 2021 to 14% in 2023. Russia has shifted its focus towards the east, with China and India now being major markets for its natural gas exports.
Global natural gas demand saw a marginal increase of 0.5% in 2023, driven by growth in China, North America, Africa, and the Middle East. China, in particular, experienced a 7.2% rise in natural gas demand, making it the world’s largest importer of liquefied natural gas (LNG).
In contrast, Europe witnessed a 6.9% drop in natural gas consumption in 2023, reaching its lowest level since 1994. This decline can be attributed to the rapid growth of renewables and increased availability of nuclear power, reducing the reliance on natural gas and pushing prices down.
The top 10 natural gas-producing countries in 2023, based on data from the Energy Institute, include the United States, Russia, Iran, China, Canada, Qatar, Australia, Norway, Saudi Arabia, and Algeria. Each of these countries plays a significant role in the global natural gas market, with varying levels of production and export capacities.
