GITNUXREPORT 2025

Natural Gas Industry Statistics

Natural gas market valued at $850 billion, growth driven by global demand.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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The carbon footprint of natural gas combustion is approximately 50-60% lower than coal, making it a cleaner energy source

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The world's first large-scale LNG hybrid plant was commissioned in Australia in 2022, combining LNG with renewable energy sources

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Over 70% of new power generation capacity added globally in 2022 was from natural gas plants, indicating a shift towards cleaner fossil fuels

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Methane emissions from natural gas operations represent about 2-3% of total production, with ongoing efforts to reduce leaks

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The U.S. took steps to reduce methane leaks from natural gas facilities by 45% by 2025 under recent regulations, aiming to decrease greenhouse gas emissions

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About 10% of the world's natural gas production is currently flared or vented, representing a significant source of methane emissions

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The natural gas industry contributes roughly 2-3% of global CO2 emissions, with ongoing efforts to reduce the environmental impact

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Investment in carbon capture, utilization, and storage (CCUS) for natural gas plants is projected to reach over $15 billion by 2030, aiming to mitigate emissions

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Natural gas is considered crucial in transitioning to renewable energy, with over 50% of new renewable energy installations supplementing gas for grid stability in 2022

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The global natural gas market was valued at approximately $850 billion in 2022

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Natural gas accounts for about 24% of global primary energy consumption in 2022

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The global liquefied natural gas (LNG) market size was valued at over $70 billion in 2022 and is expected to grow significantly

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The U.S. natural gas industry supported over 3 million jobs in 2022

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Global natural gas consumption increased by about 4.3% in 2022 compared to the previous year

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North America accounted for around 35% of total global natural gas consumption in 2022

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Natural gas-fired power plants accounted for approximately 38% of the world's electricity generation in 2022

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Latin America and the Caribbean accounted for roughly 9% of global natural gas consumption in 2022

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The number of active natural gas drilling rigs in the U.S. was about 157 in 2022, down from over 200 in 2021

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The largest natural gas consuming sector globally in 2022 was electricity generation, accounting for roughly 40% of consumption

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Total natural gas consumption in China reached approximately 320 billion cubic meters in 2022, making it one of the largest consumers globally

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Natural gas use in industrial processes accounts for roughly 20% of global consumption in 2022, mainly in chemical manufacturing and refining

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The share of natural gas in the global energy mix is expected to increase to nearly 27% by 2030, as countries seek cleaner energy solutions

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The global natural gas market is expected to grow at a compound annual growth rate (CAGR) of approximately 4% from 2023 to 2030, driven by demand in Asia and Europe

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Natural gas consumption in Japan reached about 45 billion cubic meters in 2022, making it a major importer and consumer in Asia

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Natural gas prices in the U.S. averaged $3.76 per million British thermal units in 2022

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The average cost of new natural gas combined cycle power plants was around $1,000 per kW in 2022

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The U.S. Natural Gas Equity Index (UNG) has increased approximately 12% over the first nine months of 2023, reflecting market optimism

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The average cost for LNG regasification capacity is around $200 per cubic meter, impacting the economics of LNG import projects

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The U.S. Department of Energy aims to reduce the cost of natural gas exploration and production by 20% by 2025 through technological innovation

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The global natural gas price volatility has increased significantly since 2021 due to geopolitical events and supply disruptions, impacting energy markets worldwide

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The average global well drilling cost for a natural gas well was approximately $3 million in 2022, varying by region and depth

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The United States produced over 35 trillion cubic feet of natural gas in 2022

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Russia holds the largest proven natural gas reserves in the world, with approximately 38 trillion cubic meters as of 2021

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The advent of hydraulic fracturing led to the U.S. becoming the world's top natural gas producer by 2017

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The average lifespan of a natural gas well is around 20-30 years, depending on location and production rates

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The U.S. natural gas reserves proved reserves are estimated at about 13.5 trillion cubic meters in 2022

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In 2022, approximately 66% of global natural gas production was from conventional sources, with the remaining from unconventional sources like shale

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Canada is the world's third-largest natural gas producer, with over 17 trillion cubic feet produced in 2022

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The average global natural gas well produces about 5-8 million cubic meters of gas per year, though in shale formations, it can be higher

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The utilization rate of natural gas-fired power plants is roughly 60-70% globally, depending on region and season

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The top natural gas exporting countries in 2022 included Russia, the United States, Qatar, and Canada

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Over 50% of natural gas consumption in Europe is met through imports, primarily pipeline gas and LNG

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Global natural gas imports via pipeline reached approximately 312 billion cubic meters in 2022

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The U.S. exported over 9.9 billion cubic feet of natural gas per day in 2022, mainly as LNG

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The capacity of global LNG export facilities was over 900 million tonnes per annum in 2022

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The global pipeline natural gas infrastructure spans over 3 million kilometers, providing extensive reach to consumers worldwide

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Europe imported over 80% of its natural gas needs in 2022, with Russia being a major supplier prior to recent geopolitical tensions

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The global natural gas storage capacity was approximately 400 billion cubic meters in 2022, aimed at managing seasonal demand fluctuations

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The United States increased its LNG exports by 25% in 2022 compared to 2021, solidifying its role as a leading exporter

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Investment in natural gas infrastructure worldwide reached approximately $120 billion in 2022, supporting future supply needs

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The global pipeline network has an estimated capacity of over 2.9 trillion cubic meters annually, with North America leading in capacity

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The natural gas industry is projected to invest over $500 billion globally in the next decade to expand supply infrastructure

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As of 2023, there are over 200 LNG export terminals worldwide, with new facilities planned or under construction

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The average lifespan of a natural gas pipeline is approximately 25-30 years with proper maintenance, but some have operated for over 50 years

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The development of floating LNG (FLNG) vessels has expanded the reach of natural gas projects, with over 10 floating plants in operation or development as of 2023

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Key Highlights

The global natural gas market was valued at approximately $850 billion in 2022
Natural gas accounts for about 24% of global primary energy consumption in 2022
The United States produced over 35 trillion cubic feet of natural gas in 2022
Russia holds the largest proven natural gas reserves in the world, with approximately 38 trillion cubic meters as of 2021
The top natural gas exporting countries in 2022 included Russia, the United States, Qatar, and Canada
Over 50% of natural gas consumption in Europe is met through imports, primarily pipeline gas and LNG
The global liquefied natural gas (LNG) market size was valued at over $70 billion in 2022 and is expected to grow significantly
The U.S. natural gas industry supported over 3 million jobs in 2022
Natural gas prices in the U.S. averaged $3.76 per million British thermal units in 2022
The advent of hydraulic fracturing led to the U.S. becoming the world's top natural gas producer by 2017
Global natural gas consumption increased by about 4.3% in 2022 compared to the previous year
North America accounted for around 35% of total global natural gas consumption in 2022
The average cost of new natural gas combined cycle power plants was around $1,000 per kW in 2022

The booming natural gas industry, valued at over $850 billion in 2022 and powering nearly a quarter of the world’s energy needs, is transforming global energy markets through its vast reserves, expanding infrastructure, and pivotal role in the shift towards cleaner, more sustainable power generation.

Environmental Impact and Sustainability

The carbon footprint of natural gas combustion is approximately 50-60% lower than coal, making it a cleaner energy source
The world's first large-scale LNG hybrid plant was commissioned in Australia in 2022, combining LNG with renewable energy sources
Over 70% of new power generation capacity added globally in 2022 was from natural gas plants, indicating a shift towards cleaner fossil fuels
Methane emissions from natural gas operations represent about 2-3% of total production, with ongoing efforts to reduce leaks
The U.S. took steps to reduce methane leaks from natural gas facilities by 45% by 2025 under recent regulations, aiming to decrease greenhouse gas emissions
About 10% of the world's natural gas production is currently flared or vented, representing a significant source of methane emissions
The natural gas industry contributes roughly 2-3% of global CO2 emissions, with ongoing efforts to reduce the environmental impact
Investment in carbon capture, utilization, and storage (CCUS) for natural gas plants is projected to reach over $15 billion by 2030, aiming to mitigate emissions
Natural gas is considered crucial in transitioning to renewable energy, with over 50% of new renewable energy installations supplementing gas for grid stability in 2022

Environmental Impact and Sustainability Interpretation

While natural gas boasts a substantially lower carbon footprint and is increasingly intertwined with renewable efforts— exemplified by Australia's pioneering LNG hybrid plant—its continued role as a "bridge fuel" is tempered by persistent methane leaks, flaring, and the industry's ongoing challenge to balance cleaner energy progress with environmental stewardship.

Market Size and Value

The global natural gas market was valued at approximately $850 billion in 2022
Natural gas accounts for about 24% of global primary energy consumption in 2022
The global liquefied natural gas (LNG) market size was valued at over $70 billion in 2022 and is expected to grow significantly
The U.S. natural gas industry supported over 3 million jobs in 2022
Global natural gas consumption increased by about 4.3% in 2022 compared to the previous year
North America accounted for around 35% of total global natural gas consumption in 2022
Natural gas-fired power plants accounted for approximately 38% of the world's electricity generation in 2022
Latin America and the Caribbean accounted for roughly 9% of global natural gas consumption in 2022
The number of active natural gas drilling rigs in the U.S. was about 157 in 2022, down from over 200 in 2021
The largest natural gas consuming sector globally in 2022 was electricity generation, accounting for roughly 40% of consumption
Total natural gas consumption in China reached approximately 320 billion cubic meters in 2022, making it one of the largest consumers globally
Natural gas use in industrial processes accounts for roughly 20% of global consumption in 2022, mainly in chemical manufacturing and refining
The share of natural gas in the global energy mix is expected to increase to nearly 27% by 2030, as countries seek cleaner energy solutions
The global natural gas market is expected to grow at a compound annual growth rate (CAGR) of approximately 4% from 2023 to 2030, driven by demand in Asia and Europe
Natural gas consumption in Japan reached about 45 billion cubic meters in 2022, making it a major importer and consumer in Asia

Market Size and Value Interpretation

With a market size surpassing $850 billion and natural gas fueling nearly a quarter of global energy needs—especially powering 38% of worldwide electricity—it's clear that while the industry supports millions of jobs and is poised for steady growth, the world is steadily turning to this cleaner fossil fuel to keep the lights on and the engines running amidst a shifting energy landscape.

Prices, Costs, and Market Dynamics

Natural gas prices in the U.S. averaged $3.76 per million British thermal units in 2022
The average cost of new natural gas combined cycle power plants was around $1,000 per kW in 2022
The U.S. Natural Gas Equity Index (UNG) has increased approximately 12% over the first nine months of 2023, reflecting market optimism
The average cost for LNG regasification capacity is around $200 per cubic meter, impacting the economics of LNG import projects
The U.S. Department of Energy aims to reduce the cost of natural gas exploration and production by 20% by 2025 through technological innovation
The global natural gas price volatility has increased significantly since 2021 due to geopolitical events and supply disruptions, impacting energy markets worldwide
The average global well drilling cost for a natural gas well was approximately $3 million in 2022, varying by region and depth

Prices, Costs, and Market Dynamics Interpretation

While U.S. natural gas prices remain relatively manageable and investments in new infrastructure look promising, escalating global volatility and regional costs underscore that the industry’s economic success hinges on innovation, geopolitical stability, and strategic foresight.

Production and Reserves

The United States produced over 35 trillion cubic feet of natural gas in 2022
Russia holds the largest proven natural gas reserves in the world, with approximately 38 trillion cubic meters as of 2021
The advent of hydraulic fracturing led to the U.S. becoming the world's top natural gas producer by 2017
The average lifespan of a natural gas well is around 20-30 years, depending on location and production rates
The U.S. natural gas reserves proved reserves are estimated at about 13.5 trillion cubic meters in 2022
In 2022, approximately 66% of global natural gas production was from conventional sources, with the remaining from unconventional sources like shale
Canada is the world's third-largest natural gas producer, with over 17 trillion cubic feet produced in 2022
The average global natural gas well produces about 5-8 million cubic meters of gas per year, though in shale formations, it can be higher
The utilization rate of natural gas-fired power plants is roughly 60-70% globally, depending on region and season

Production and Reserves Interpretation

While the U.S. has surged to the forefront of natural gas production thanks to hydraulic fracturing, Russia maintains the world's largest reserves, highlighting a global game of musical chairs where longevity and capacity define national energy dominance.

Trade and Infrastructure

The top natural gas exporting countries in 2022 included Russia, the United States, Qatar, and Canada
Over 50% of natural gas consumption in Europe is met through imports, primarily pipeline gas and LNG
Global natural gas imports via pipeline reached approximately 312 billion cubic meters in 2022
The U.S. exported over 9.9 billion cubic feet of natural gas per day in 2022, mainly as LNG
The capacity of global LNG export facilities was over 900 million tonnes per annum in 2022
The global pipeline natural gas infrastructure spans over 3 million kilometers, providing extensive reach to consumers worldwide
Europe imported over 80% of its natural gas needs in 2022, with Russia being a major supplier prior to recent geopolitical tensions
The global natural gas storage capacity was approximately 400 billion cubic meters in 2022, aimed at managing seasonal demand fluctuations
The United States increased its LNG exports by 25% in 2022 compared to 2021, solidifying its role as a leading exporter
Investment in natural gas infrastructure worldwide reached approximately $120 billion in 2022, supporting future supply needs
The global pipeline network has an estimated capacity of over 2.9 trillion cubic meters annually, with North America leading in capacity
The natural gas industry is projected to invest over $500 billion globally in the next decade to expand supply infrastructure
As of 2023, there are over 200 LNG export terminals worldwide, with new facilities planned or under construction
The average lifespan of a natural gas pipeline is approximately 25-30 years with proper maintenance, but some have operated for over 50 years
The development of floating LNG (FLNG) vessels has expanded the reach of natural gas projects, with over 10 floating plants in operation or development as of 2023

Trade and Infrastructure Interpretation

As the world relies heavily on a vast and aging infrastructure, with over 3 million kilometers of pipelines and billions invested in future capacity, it’s clear that while natural gas remains the globe's bridge fuel, geopolitical tensions and a rapidly evolving LNG landscape are turning this bridge into a high-stakes highway to energy resilience—or risk, depending on your point of view.