The second largest natural gas producer and exporter in the world, despite ongoing conflicts and shifts in trade relationships, is still able to maintain its position. The European Union (EU) is taking steps to eliminate its reliance on natural gas sourced from Russia by 2027, driven by political and security concerns related to the country’s conflict with Ukraine. In 2023, Russia supplied only 14 percent of the EU’s natural gas needs, a significant decrease from 45 percent in 2021. Russia has redirected its focus to the east, with China and India emerging as key markets for its natural gas exports.
Global natural gas demand experienced a slight growth of 0.5 percent in 2023, with rising consumption in China, North America, Africa, and the Middle East balancing out declines in other regions. China, in particular, emerged as the world’s largest importer of liquefied natural gas (LNG), with a 7.2 percent increase in demand due to ongoing pandemic recovery efforts.
In contrast, Europe saw a 6.9 percent decrease in natural gas consumption in 2023, reaching its lowest level since 1994. This decline was attributed to the rapid expansion of renewable energy sources and increased availability of nuclear power, reducing the reliance on natural gas and leading to lower prices in the market.
To explore further, the top 10 natural gas-producing countries in 2023 based on data from the Energy Institute are outlined below:
1. United States
2. Russia
3. Iran
4. China
5. Canada
6. Qatar
7. Australia
8. Norway
9. Saudi Arabia
10. Algeria
These countries play significant roles in the global natural gas market, each contributing to production, consumption, and export activities in unique ways.
