25 Countries That Produce the Most Natural Gas
By Sana Ijaz
In this article, we will list the top natural gas-producing countries and the current market trends. If you want to skip our overview of the natural gas market, read 5 Countries That Produce the Most Natural Gas.
The World Energy Administration’s International Energy Outlook 2023 reports that natural gas is the fastest-growing fossil fuel globally. Its consumption is expected to increase from 4.36 trillion cubic meters in 2022 to a range between 4.8 trillion and 6.8 trillion cubic meters by 2050.
This growth in consumption is widespread regionally, with notable increases in countries such as India and China and in regions including Africa, and the Middle East. The primary sectors driving this increased consumption are the electric power sector, where natural gas is replacing retiring coal-fired power generation, and the industrial sector, where it fuels expanding industrial production.
In the US, the Energy Information Administration (EIA) has projected an increase in dry gas production, domestic gas consumption, and liquefied natural gas (LNG) exports for 2023 and 2024. According to the EIA, the country’s dry gas production is projected to reach 102.69 billion cubic feet per day (Bcf/d) by the end of the year and to 104.93 Bcf/d in 2024, up from 98.13 Bcf/d in 2022. In terms of natural gas consumption, the figures, standing at, 88.56 Bcf/d in 2022, are expected to reach 89.72 Bcf/d in 2023, and then slightly decline to 88.84 Bcf/d in 2024.
To meet the growing demand, the world’s top natural gas-producing countries are increasing production and investing in new extraction technologies. These efforts aim to expand existing fields and explore new reserves. However, these current efforts are deemed insufficient. According to the Institute of Energy Economics in Japan, the world will require approximately $7 trillion in investments to ensure an adequate natural gas supply through 2050.
The Biggest US Energy Deal in Decades – Exxon Acquires Pioneer
The Permian Basin, located in the southwestern part of the US, extends into western Texas and southeastern New Mexico. It accounts for nearly 15% of the US’s natural gas production and is the country’s largest oilfield. The EIA reports that natural gas production in the basin reached a record annual high, averaging 21 billion cubic feet per day. This production primarily comes from associated natural gas produced by oil-directed drilling. Notably, Lea and Eddy counties in New Mexico had been producing an average of 3.7 billion cubic feet of gas per day until March 2023, which constitutes 29% of the basin’s gas production in the first quarter of this year.
Due to the basin’s abundant resources, it has been of significant interest to major players in the oil and gas industry. In a strategic move to expand its presence in the basin, Exxon Mobil Corporation (NYSE:XOM) recently acquired Pioneer Natural Resources Co. (NYSE:PXD), marking the closure of one of the largest US energy deals recently. In October 2023, Exxon Mobil Corporation (NYSE:XOM) and Pioneer Natural Resources (NYSE:PXD) formally announced a definitive agreement wherein ExxonMobil acquired Pioneer. This merger, an all-stock transaction, is valued at approximately $59.5 billion, equivalent to $253 per share, based on ExxonMobil’s closing price as of October 5, 2023.
The merger combines Pioneer’s 850,000 acres in the Midland Basin with ExxonMobil’s 570,000 acres in the Delaware and Midland Basins. This consolidation will establish a leading position in the US for undeveloped oil and gas resources. According to Exxon’s official press release, the merged entities will possess about 16 billion barrels of oil and gas resources in the Permian Basin.
Post-merger, ExxonMobil Corporation’s (NYSE:XOM) production in the Permian basin is set to more than double to 1.3 million barrels per day, based on 2023 figures, and is expected to increase to approximately 2 million barrels per day by 2027. ExxonMobil views this deal with Pioneer Natural Resources Company (NYSE:PXD) as an opportunity to enhance US energy security by leveraging advanced technology and expertise to boost domestic energy supply.
Following the deal, Exxon Mobil Corp Chairman and CEO commented that:
“Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge. The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis.”
Let’s now discuss the top natural gas-producing countries in the world:
25 Countries That Produce the Most Natural Gas
25 Countries That Produce the Most Natural Gas
25 Countries That Produce the Most Natural Gas
Our Methodology
We referred to the 72nd edition of the Energy Institute’s Statistical Review of World Energy to identify the top natural gas-producing countries. Our list was compiled by averaging the annual natural gas production of these countries from 2020 to 2022, and ranking them in ascending order based on their average production.
Based on our findings, here are the leading natural gas-producing countries:
25. Kazakhstan
Average Annual Gas Production: 27.7 billion cubic meters
In 2023, Kazakhstan planned its third oil and gas bid round, targeting four fields and 14 acreages in established production provinces such as Mangistau, Atyrau, and Aktobe. The initiative aims to produce 55 billion cubic meters of gas, including 28 billion marketable gas, with around 79 gas production companies involved, 23 of which integrate into the gas transmission system for domestic and export purposes.
Additionally, in 2022, Kazakhstan completed 142 gas projects, increasing access to natural gas for over 284,800 people across 107 rural settlements. The government planned 86 more projects by the end of the year to extend gas access to an additional 170,000 people in 56 rural settlements. As of January 1, 2023, Kazakhstan’s state balance sheet shows 307 oil fields with recoverable reserves of 4.4 billion tons, according to the Astana Times. Notably, as Kazakhstan is among the countries with the most natural resources, around 26.8% of its GDP comes from them, of which, its oil and uranium reserves are crucially important.
Also Read: 20 Most Valuable Mining Companies in the World
24. Thailand
Average Annual Gas Production: 29.9 billion cubic meters
Thailand’s natural gas production decreased by 18.7% year-on-year between 2021 and 2022, mainly due to declines in the Malaysia-Thailand Joint Development Area and fields like Pailin and Sirikit. While the state-owned PTT Exploration and Production (PTTEP) has successfully boosted output from the Bongkot field, it faces challenges with the Erawan field. Efforts are underway to increase Erawan’s production by 2024. However, overall production is expected to remain below consumption levels. Natural gas consumption in Thailand, largely driven by the power sector, rose from 21 billion cubic meters in January to 34.3 bcm in May 2023, accounting for 62% of total consumption.
23. Azerbaijan
Average Annual Gas Production: 30.6 billion cubic meters
In the first ten months of 2023, Azerbaijan transported 32.9639 billion cubic meters of natural gas through its main pipelines, a 4% increase from the previous year, as reported by the Pipeline Journal. The Baku-Tbilisi-Erzurum pipeline, or the South Caucasus Pipeline, played a significant role in this transportation. Azerbaijan’s proven gas reserves are 2.6 trillion cubic meters, with estimated reserves reaching around 3 trillion cubic meters. The Shah Deniz gas field, among the world’s largest, holds reserves of approximately 1.2 trill