SEATTLE (Oil Monster): The global natural gas market size is calculated at USD 4.19 trillion in 2024, grew to USD 4.41 trillion in 2025, and is projected to reach around USD 6.96 trillion by 2034. The market has a sustained growth trajectory as demand increasingly rises from LNG exports, electricity usage from data centres, and use in the power and industrial sectors. A study published by Towards Chemical and Materials a sister firm of Precedence Research.
Natural Gas Market Overview
Natural gas is a fossil fuel primarily made up of methane, which is used as a clean-burning fuel source for electricity production, heating, and industrial uses, and it is a primary feedstock in the production of chemicals and fertilizers.
The natural gas markets are driven by global demand for cleaner alternatives to existing fossil fuel energy sources, by rising electricity demand, and the increasing use of natural gas in transportation and industry. Developments in liquefied natural gas (LNG) technology and pipeline infrastructure developments are facilitating market trade opportunities between countries. While North America is generally the largest producer, in terms of consumer markets, Asia Pacific with its wok and rising energy needs and with a focus on how to replace coal with cleaner fuel sources, is the fastest growing consumer market.
Natural Gas Market Major Trends?
Growth in LNG Trade- The demand for flexible, cross-border energy supply is driving investment in LNG terminals, which will allow access to, and logistics for, natural gas on a much larger scale globally.
Coal-to-gas Shift- Countries are moving from coal to natural gas for energy generation purposes to reduce carbon emissions - this coincides with clean energy goals of countries, as well as environmental policies framed by national government commitments to global climate agreements.
Growth of Gas Infrastructure- The development of pipelines, storage, and distribution systems is, and will continue to further, reliable supply access and reliability, especially in emerging economies where demands for energy are exploding.
Partnership with Renewable Energy- Natural gas is increasingly being incorporated as a back-up temporary source of fuel for intermittent renewable sources like solar and wind, while still providing low emitting gas during times of peak demand that would otherwise be higher emitting power generation sources.
Natural gas is a relatively clean-burning fossil fuel
Burning natural gas for energy results in fewer emissions of nearly all types of air pollutants and carbon dioxide (CO2) emissions than burning coal or petroleum products to produce an equal amount of energy. For comparison, for every 1 million Btu consumed (burned), more than 200 pounds of CO2 are produced from coal and more than 160 pounds of CO2 are produced from fuel oil. The clean-burning properties of natural gas have contributed to increased natural gas use for electricity generation and for fleet vehicle fuel in the United States.
Natural gas is mainly methane—a strong greenhouse gas
Some natural gas leaks into the atmosphere from oil and natural gas wells, storage tanks, pipelines, and processing plants. The U.S. Environmental Protection Agency estimates that in 2021, methane emissions from natural gas and petroleum systems and from abandoned oil and natural gas wells were the source of about 33% of total U.S. methane emissions and about 4% of total U.S. greenhouse gas emissions.1 The oil and natural gas industry takes steps to prevent natural gas leaks. The U.S. Energy Information Administration (EIA) estimates that in 2022, U.S. CO2 emissions from burning natural gas for energy accounted for about 35% of total U.S. energy-related CO2 emissions.
Courtesy: www.finance.yahoo.com
