The EU plans to phase out natural gas sourced from Russia by 2027 due to the country’s conflict with Ukraine, despite Russia remaining the world’s second-largest natural gas producer and exporter. In 2023, only 14 percent of the EU’s natural gas needs were supplied by Russia, down from 45 percent in 2021. Russia has redirected its natural gas exports to China and India following the EU’s rejection of its products.
Global natural gas demand increased by 0.5 percent in 2023, driven by growth in China, North America, Africa, and the Middle East. China emerged as the world’s largest importer of LNG, with a 7.2 percent rise in natural gas demand. Meanwhile, Europe experienced a 6.9 percent decline in natural gas consumption, reaching its lowest level since 1994, attributed to the expansion of renewable energy and nuclear power, reducing the reliance on natural gas and lowering prices.
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. The United States leads global natural gas production, with a focus on exports to Europe to fill the gap left by Russia. Russia holds the largest natural gas reserves globally, but its revenues declined due to Europe’s shift away from Russian gas. Iran is the third-largest natural gas producer, with plans to increase production capacity. China has witnessed significant growth in natural gas production, driven by government initiatives to reduce air pollution. Canada, Qatar, Australia, Norway, Saudi Arabia, and Algeria are also key players in the global natural gas market, each contributing significantly to production, exports, and reserves.
