The European Union is planning to phase out its reliance on natural gas sourced from Russia by 2027 due to ongoing conflicts involving Ukraine. Despite being the second largest producer and exporter of natural gas globally, Russia’s market share in the EU has decreased significantly, with the country turning to other markets in the East such as China and India.
In 2023, global natural gas demand saw a modest increase of 0.5%, driven by growth in China, North America, Africa, and the Middle East, offset by declines elsewhere. China emerged as the world’s largest importer of liquefied natural gas (LNG) with a 7.2% rise in demand, reflecting its ongoing recovery from the pandemic. In contrast, Europe experienced a 6.9% decrease in natural gas consumption, reaching its lowest levels since 1994. This decline was attributed to the rapid growth of renewable energy sources and increased availability of nuclear power, reducing the need for natural gas and resulting in lower prices.
The top 10 natural gas-producing countries in 2023, based on data from the Energy Institute, include the United States as the largest producer, followed by Russia, Iran, China, Canada, Qatar, Australia, Norway, Saudi Arabia, and Algeria. Each country has unique factors influencing its natural gas production, consumption, and export strategies.
