Natural gas is for sure a better alternative to coal and other petroleum sources for electricity production and for heat generation for both domestic as well as industrial use. Natural gas, when used to generate electricity, emits nearly half the carbon dioxide that coal does. This is why natural gas is considered a better alternative to coal all across the globe. Even LNG (liquefied natural gas) can be used as a fuel for motor engines in vehicles. And everybody knows that using LNG instead of diesel and petrol is not just quite efficient, but it’s less harmful to the environment. As of now, if you consider the dollar value to determine the size of an industry or sector, then surely the oil and gas sector is the biggest one right now.
Natural gas extraction is taking place on a massive scale, not just in one particular country, but all over the world. However, in the case of natural gas, the countries that extract and produce the most amount, are also responsible for the higher consumption in the world. You may know the USA is the largest producer of natural gas in the world, but what about other nations that play a significant role in this industry? Well, that’s what is going to be the prime focus of today’s post because here we will be taking a look at the top 10 largest producers of natural gas in the world.
Top Countries for Natural Gas Production in World
Let’s get down to it then.
1. The United States Of America
It is a fact that the United States Of America accounts for more than 23% of natural gas production in the total production amount of the world. And there is no other country that comes any near in terms of natural gas production what the USA produces in one fiscal year. As per the data from last year, the United States produced or extracted a whopping 826.7 billion cubic meters of natural gas in just one year. However this year, the production has been around 934.2 billion cubic meters. Most of which is used to fulfill the countrywide demand and to support the natural gas reserves of the nation. All of this is only possible because the USA has developed and has access to the latest state-of-the-art technology which is quite revolutionary not just in extracting the gas, but for further processing and distribution as well.
2. Russia
Russia’s gas production has dipped in the last few years because of the pandemic and the recent war-like situation with Ukraine. However, Russia still holds the title of the second-largest producer of natural gas in the world, and it is highly unlikely that any other lower rank countries on this list will surpass Russia anytime soon. Russia actually accounts for more than 17% of the total natural gas production in the world, which is an insanely enormous number. Russia is one of those countries that has the strongest natural gas reserves because of in-house natural gas extraction and processing. In 2021, Russia produced or extracted well over 701.7 billion cubic meters of natural gas in just one fiscal year. For sure, Russia is also known as one of the biggest consumers of natural gas in the world, but Russia also exports a considerable proportion of natural gas to European Union countries.
3. Iran
If you look at a few decades-old data of worldwide natural gas production, Iran would not have been at the 3rd rank on any list at that time. But it was quite recently when the Iranian government extensively increased the extraction and processing of natural gas. Thus, Iran became the third-largest producer of natural gas in the world. However it barely produces 40% of what Russia does, but still last year, Iran produced around 256.7 billion cubic meters of natural gas. Since the oil and gas industries are the most prominent in Iran and other middle eastern countries, it has definitely given a boost to the overall economy of Iran.
4. China
The natural gas industry of China has seen a significant increase in this last decade or so, and that is because of the discovery of the Fuling Shale Gas Field. This field has the potential to increase the total natural gas extraction done by China by a few percent because of the 400 fully functional wells. That is why last year, China produced well over 209.2 billion cubic meters of natural gas in just one fiscal year. However, if you take a look at the natural gas consumption data of China, it is way more than what China produces every year. For example, last year, China’s total natural gas consumption was around 378.7 billion cubic meters. Thus China imports most of its natural gas from Russia, and other Asian countries to keep up with such high demand.
5. Qatar
If we were to make a list of the largest known natural gas reserves in the world, then for sure Qatar would hold the 3rd spot as the 3rd largest country to have an insane amount of natural gas reserves that are yet to be extracted. However, Qatar lacks in terms of the technology needed to extract and process natural gas on a large scale. Thus it is ranking in the 5th spot on our list today with annual natural gas production of 177 billion cubic meters. As per the current geopolitical situation, many countries are looking for alternatives to Russian natural gas. Therefore it is a great opportunity for Qatar to develop the oil and gas industry further.
6. Canada
In Canada, natural gas is mainly utilized to generate heat not just for houses but is an essential thing for industrial use as well. That is because Canada’s weather is mostly cold, and natural gas is a better option to heat up the in-house environment. Thus the demand for natural gas is pretty steady but slowly growing every year. Thus Canada imports a significant amount of natural gas from the USA. However, natural gas imports have decreased significantly over the years since Canada’s natural gas sector is becoming strong with every fiscal year passing by. For example, last year, Canada produced well over 172.3 billion cubic meters of natural gas.
7. Australia
In recent years, Australia has dealt with climate conditions as well as geopolitical situations, thus there was an undeniable shortage of gas. However, the infrastructure in place for natural gas extraction, processing, and distribution is pretty strong enough compared to other nations in the world. Australia is known as one of the largest natural gas exporters, that’s because Australia’s climate conditions are pretty warm, thus they only use natural gas for electricity production mainly. Therefore Australia exports more than 100 billion cubic meters of natural gas to other nations every year. And talking about the production side of things, Australia produced around 147.2 billion cubic meters last year.
8. Saudi Arabia
Saudi Arabia is known as the third largest crude oil producer in the world, but natural gas extraction isn’t a prominent sector in Saudi. However, the natural gas sector has developed quite a lot in recent years, and that’s the reason Saudi Arabia surpassed the 100 billion cubic meters of natural gas production mark in the last few years. According to last year’s data, Saudi Arabia produced around 117.3 billion cubic meters of natural gas in 2021.
9. Norway
Norway is one such country that produces a significant amount of natural gas to keep up with the rising nationwide demand among the general population and various industries. Some reports show that Norway’s natural gas consumption has increased significantly in the last decade, thus the production has also increased accordingly. In 2021, Norway produced or extracted around 114.3 billion cubic meters of natural gas.
10. Algeria
Last but not least is this North African country, Algeria, which has earned the title of the 10th largest producer of natural gas in the world. It was just last year when Algeria surpassed the 100 billion cubic meters gas production mark in one fiscal year. To be precise, Algeria produces around 100.8 billion cubic meters of natural gas, most of which is exported to European nations and other countries in the world.
Conclusion
Now you have a pretty good idea of which are the top 10 largest producers of natural gas in the world. The natural gas industry is getting bigger every year, thus you may see some changes in the lower rank producers on this list.
Natural Gas Frequently Asked Questions
Q1. How is natural gas produced?
Ans: Natural gas is produced through the drilling of wells into underground rock formations that contain natural gas. Once the well is drilled, the natural gas can be brought to the surface and processed before it is transported through pipelines to customers.
Q2. What are the major uses of natural gas?
Ans: Natural gas is used for heating homes and businesses, generating electricity, fueling vehicles, and producing various chemicals and materials.
Q3. What are the environmental impacts of natural gas production?
Ans: The environmental impacts of natural gas production can include water contamination, air pollution, and greenhouse gas emissions. Methane, the primary component of natural gas, is a potent greenhouse gas that contributes to climate change.
Q4. How is natural gas transported?
Ans: Natural gas is typically transported through pipelines, although it can also be transported by tanker truck or ship in some cases. Liquefied natural gas (LNG) is transported by tanker ship.
Q5. What is the future of natural gas production?
Ans: The future of natural gas production is uncertain, as there are competing factors such as environmental concerns and technological advances. However, natural gas is likely to continue to play a significant role in meeting global energy demand for the foreseeable future.
