Natural Gas Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global natural gas market reached a volume of about 3977 BCM in 2021. The industry is projected to grow at a CAGR of around 1.7% in the forecast period of 2022-2027 to reach a volume of 4350 BCM by 2027.

The natural gas industry report gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. It has been anticipated that the international natural gas market will have a strong growth during 2021-2031. While there is a decline in the production of oil and gas around the world, the demand for, cleaner and more useful, natural gas may rise in the coming years. The key demand indicator in the industry report is the highest category spender by region — North America and Asia Pacific.

Industry Definition and Segmentation

Natural gas comprises of methane and other flammable hydrocarbons and is a non-renewable kind of fuel that is commonly used as a source for cooking and heating functions. In addition, it is the most widely acceptable form of fuel because of its efficient and clean burning qualities. The global natural gas industry report comprises segments based on its type (Ethane, Methane, Propane and Others), source (Conventional and Unconventional), application (Automotive, Power Generation, Household, and Industrial), and regions (North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa).

North America and Asia Pacific Regions are Driving the Growth of the Industry

Due to the extensive consumption of natural gas for commercial, industrial, and residential uses in countries like, the U.S. and Canada, North America is expected to be the leading region in the market. On the other hand, Asia Pacific region held the topmost position in the global natural gas distribution market, occupying 28% share in 2020, followed by Eastern Europe and South America. In addition, the major market drivers are increase in the preference of cleaner and efficient source of energy and its usage in numerous disciplines. Moreover, the rising need to lessen the carbon footprints is anticipated to lead to the development of the market in the forthcoming years. Initiatives and steps taken by the governments like, subsidies, may support the increased utilisation of natural gas that can propel the overall growth of the market. Some of the other factors that may help bolster the market growth in the future are progress in the economic conditions and speedy urbanisation.

Nevertheless, there may be certain constraints such as, regulations around carbon emissions, unpredictability in oil and gas prices, probability of leakages while transporting and storage of natural gas, and high storage expense faced by the manufacturers, limiting the growth of the international market.

Best Procurement Practices

The global natural gas industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed natural gas utilising regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Natural gas is developed by layers of decaying vegetation and animal substance that are exposed to extreme heat and pressure below the surface of the Earth over millions of years. The initially obtained energy by the plants from the sun is accumulated in the form of chemical binds turns into gas and this fossil fuel is called natural gas. The natural gas companies perform activities like exploration, development, and production of the gas by using pumping technologies and systems. The three common methodologies used for producing gas are thermal recovery and gas injection or chemical flooding.

Rise in the Demand for Light-Duty Vehicles to Further Drive the Procurement of Natural Gas

The natural gas is an eco-friendly fuel and is extensively used in light-duty vehicles and hence, the elevated demand for these types of vehicles has led to the growth of the industry. In addition, light duty vehicle is the most profitable division of the global compressed natural gas (CNG) market, showcasing the maximum potential for investment owing to the increase in the usage of CNG in several metropolitan cities around the world to evade air pollution and bring down the cost of CNG relatively to other fossil fuels. The North America CNG industry reached the hight growth rate in the international market, the second in line was Asia Pacific.

The major zones in the industry are North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa with North America leading the market.

Key Industry Players Mentioned in the Natural Gas Industry Report

• Gazprom
• Exxon Mobil Corporation
• China National Petroleum Corporation
• Royal Dutch Shell Plc
• BP Plc, Chevron
• Conoco Philips

Market Landscape

Based on the type of natural gas, methane product segment is anticipated to promote the overall growth of the market in the forthcoming years since its utilisation leads to the minimum amount of carbon emanation. Among the end-use industry the automotive industry is projected to make the biggest contribution to the natural gas market. This is mainly because of the heightened natural gas consumption as a fuel in variety of vehicles globally. Moreover, due to the high level of competition in the global natural gas market with the existence of many well-recognised companies, several of whom are likely to hold a large share in the entire market, in the future.

Key Initiatives by Companies

• In Jan 2019, Saudi Arabia declared a project into the U.S. natural gas as an investment in LNG which will help Saudi Arabia to compete with Qatar as it is preparing to invest more than USD 20 million.
• In Feb 2019, Exxon Mobil and Qatar gave a go ahead to the plan to export natural gas from Texas. With this effort, Qatar wanted to expand its natural gas business further, as it worked with Exxon Mobil earlier in Argentina, Brazil, and Monzambique.