Natural gas

Natural gas is considered the fossil fuel with the lowest emissions, as it emits significantly less CO₂ and air pollutants during combustion than coal and oil. Natural gas therefore is considered the least emission intensive option of all fossil fuels to bridge demand gaps and supporting the energy transition towards a decarbonised energy system.

At 4.14 tcm, global natural gas production in 2022 remained almost unchanged from the previous year (previous year: 4.18 tcm), primarily due to production cuts in the Russian Federation, the world's second-largest natural gas producer. This was largely offset by production increases in the United States (plus 5%), Canada (plus 5.9%) and Norway (plus 7.4%), among others. Global natural gas reserves amount to 211 trillion cubic meters. The Russian Federation, Iran and Qatar together hold around half of the world's natural gas reserves.

Regional distribution of total natural gas potential in 2022 (excluding aquifer gas and gas hydrates) Source: BGR

Germany's share of global natural gas imports in 2022 was around 10%, with a large proportion of this natural gas being re-exported to neighbouring European countries. With a consumption of around 81 bcm, Germany is the ninth largest consumer in the world.

In the second half of 2020, natural gas prices on the spot markets began to rise worldwide, although the European natural gas price was many times higher than that of the United States or Japan. In May 2021, the European natural gas price exceeded the Japanese LNG price, which had been higher for many years. The Russian Federation's war of aggression against Ukraine and the extensive cessation of pipeline-based supplies to Europe led to an enormous surge in demand for LNG in 2022, with a corresponding sharp rise in prices, particularly in Europe.

Some of the LNG trade flows shifted from Asia to Europe. The EU-27 countries imported 62% more LNG than in the previous year (around 125 bcm in total). By August 2022, the European natural gas price had risen to over 0.20€/kWh. As it was possible to avoid the feared supply disruptions through both savings and additional LNG deliveries, the European natural gas price fell significantly to around 0.12€/kWh towards the end of 2022 and further to around 0.05€/kWh by November 2023. However, it remained above the long-term average of previous years (0.02€/kWh to 0.03€/kWh)

However, Asia continued to account for the largest share of global LNG imports at 65%, with Japan (100 bcm), China (87 bcm) and South Korea (65 bcm) accounting for the largest volumes (GIIGNL 2023). In 2022, Qatar (109 bcm), Australia (108 bcm) and the United States (104 bcm) were the largest LNG exporters.

BGR collects and evaluates comprehensive information on the global distribution and availability of natural gas.