Natural gas: Relationships

Every element and industry that Natural gas is linked to, and how. Each pair has its own card explaining the relationships between the two.

Ammonia: Most of the world's ammonia is made from natural gas, which supplies both the hydrogen and the process heat, so gas is most of an ammonia plant's cost. When gas prices spike, as in Europe in 2022, ammonia output is cut and fertiliser prices rise. (researched)
Conventional oil and gas production: Most of the world's gas comes from conventional fields, either gas reservoirs or as associated gas produced alongside oil. Associated gas ties gas supply to oil drilling, and where there is no pipeline or market it is flared: 167 bcm in 2025. In India the link is written into policy, with domestic gas from old fields priced at 10% of the crude basket within a floor and cap. (researched)
Gas turbines and combined cycle: Gas turbines are the main way gas becomes electricity, so their fleet size and running hours set the power sector's gas burn. Where gas is expensive, as in India, plants sit idle and serve only peaks; where power demand surges, as with data centres, turbine orders run years ahead of supply. (researched)
Methanol: Outside China almost all methanol is made by reforming natural gas, which is its main cost, so plants are built where gas is cheap and stop when their gas supply fails. (researched)
Nitrogen (ammonia): About 72% of the world's ammonia is made from natural gas, which supplies both the hydrogen and the energy, so gas is most of the cost and the marginal producer's gas price sets the ammonia price. When European gas spiked in 2022, half of Europe's ammonia capacity was shut or curtailed, and India's urea plants now depend heavily on imported LNG. (researched)
Sulfur: Most of the world's sulphur is not mined but removed from sour natural gas and crude oil, so its supply is set by gas processing and refining, not by sulphur prices. Gulf sour gas makes the Middle East a leading exporter, with nearly half of seaborne sulphur trade passing through the Strait of Hormuz, which ties sulphur, and the phosphate fertiliser and nickel leaching that use it, to Gulf gas output and shipping. (researched)
Building materials: Gas is the kiln and furnace fuel for tiles and glass, over 30% of ceramic input costs at Morbi in 2022, so a gas shock, such as the 2026 Hormuz disruption that shut most Morbi kilns for about six weeks, hits output and prices at once. (researched)
Data centres and cloud: Gas is the largest single source of power for US data centres and the IEA expects it to supply the biggest share of their added demand to 2030, so the AI build-out has become a new source of US gas demand and a new buyer of scarce gas turbines. (researched)
Ethylene: Ethane separated from natural gas cracks into ethylene at over 80% yield, against about 30% for naphtha, so gas-rich regions make the cheapest ethylene and set the competitive bar for oil-based crackers. (researched)
Hydrogen: Steam reforming of natural gas makes most of the world's hydrogen, using 290 bcm of gas in 2024, so gas sets grey hydrogen's cost; carbon capture and electrolysis are the routes away from unabated gas, both still dearer. (researched)
LNG chain: LNG is how natural gas crosses oceans, and it now links regional gas markets that pipelines kept apart. Contract formulas tied to oil or to US Henry Hub, plus spot cargoes priced on JKM, decide what importers such as India pay. (researched)
Steel: Natural gas can replace coke as the agent that strips oxygen from iron ore, in direct reduced iron (DRI) plants that feed electric furnaces and emit about half the CO2 of a blast furnace. About two thirds of world DRI is gas-based, but India, the largest DRI producer, makes most of its DRI from coal, and the same gas-based shaft furnaces can later switch to hydrogen. (researched)
Textiles and leather: Textile dyeing, printing and finishing need large amounts of low-temperature heat, and in clusters such as Surat much of it comes from piped gas, so gas prices and supply shocks pass quickly into processing charges, and high gas prices push units back to coal. (researched)
Transport and logistics: Gas enters transport as compressed gas for cars, autos, buses and light trucks and as LNG for heavy trucks and ships; India has built a large CNG network and plans LNG trucking, but in China, the largest LNG truck market, battery trucks are now taking share from gas. (researched)
Unconventional oil and gas: Shale and tight formations now supply most US gas, which turned the United States into a net exporter and the world's largest LNG seller. Through LNG, the cost of US shale gas plus liquefaction has become a reference point for gas prices in Europe and Asia. (researched)
Urea: Urea is gas turned into a solid fertiliser: gas supplies the hydrogen for ammonia and most of the energy, so gas is the largest cost and sets the world price floor. In India a pooled gas price and a fixed farm price push gas cost shocks onto the subsidy bill rather than onto farmers. (researched)
Acetic acid: Natural gas is a raw material for acetic acid; their prices have moved together.
Acrylics (PMMA): Natural gas is a raw material for acrylics (PMMA); their prices have moved together.
Acrylonitrile: Natural gas is a raw material for acrylonitrile; their prices have moved together.
Ammonium nitrate: Natural gas is a raw material for ammonium nitrate; their prices have moved together.
Carbon dioxide: Natural gas is a raw material for carbon dioxide; their prices have moved together.
EPDM: Natural gas is a raw material for EPDM; their prices have moved together.
Ethylene oxide: Natural gas is a raw material for ethylene oxide; their prices have moved together.
Formaldehyde: Natural gas is a raw material for formaldehyde; their prices have moved together.
Fuel stocks and strategic reserves: Fuel stocks and strategic reserves needs natural gas; their prices have moved together.
Gas pipelines and city gas: Gas pipelines and city gas needs natural gas; their prices have moved together.
Herbicides: Natural gas is a raw material for herbicides; their prices have moved together.
High-density polyethylene: Natural gas is a raw material for high-density polyethylene; their prices have moved together.
Hydrogen peroxide: Natural gas is a raw material for hydrogen peroxide; their prices have moved together.
Nitric acid: Natural gas is a raw material for nitric acid; their prices have moved together.
Polyethylene (LDPE, LLDPE): Natural gas is a raw material for polyethylene (LDPE, LLDPE); their prices have moved together.
Polyurethanes (MDI, TDI, polyols): Natural gas is a raw material for polyurethanes (MDI, TDI, polyols); their prices have moved together.
Refining and reforming: Refining and reforming needs natural gas; their prices have moved together.
Specialty amines and ethanolamines: Natural gas is a raw material for specialty amines and ethanolamines; their prices have moved together.
AI and digital platforms: AI and digital platforms depends on natural gas.
Advanced geothermal: Their prices have moved together.
Aerospace and defence: Aerospace and defence depends on natural gas.
Amino acids (lysine, methionine): Natural gas is a raw material for amino acids (lysine, methionine).
Ammonia, methanol and e-fuels: Their prices have moved together.
Ammonium sulphate: Natural gas is a raw material for ammonium sulphate.
Biogas and biomethane: Their prices have moved together.
Biomass combustion and CHP: Their prices have moved together.
Boiler heat recovery: Their prices have moved together.
Boilers, furnaces and stoves: Their prices have moved together.
Building heat recovery: Their prices have moved together.
Coal mining: Their prices have moved together.
Combined heat and power: Their prices have moved together.
Compressed-air and CO2 storage: Their prices have moved together.
Construction and infrastructure: Construction and infrastructure depends on natural gas.
Crude oil: Their prices have moved together.
DAP and MAP: Natural gas is a raw material for DAP and MAP.
Data centres: Their prices have moved together.
Electric heating: Their prices have moved together.
Electrical equipment: Electrical equipment depends on natural gas.
Energy in buildings: Their prices have moved together.
Energy in farming: Their prices have moved together.
Energy-intensive industry: Their prices have moved together.
Explosives and propellants: Their prices have moved together.
Fatty acids: Their prices have moved together.
Flare and off-gas recovery: Flare and off-gas recovery needs natural gas.
Food and beverage processing: Food and beverage processing depends on natural gas.
Geothermal direct use and ground-source heat pumps: Their prices have moved together.
Geothermal power plants: Their prices have moved together.
Heat exchangers and pinch integration: Their prices have moved together.
Heat pumps, air conditioning and refrigeration: Their prices have moved together.
Helium: Their prices have moved together.
Household and personal care: Household and personal care depends on natural gas.
Hydrogen and hydrogen carriers: Their prices have moved together.
Hydrogen storage: Their prices have moved together.
Hydropower dams: Their prices have moved together.
Industrial heat pumps and vapour recompression: Their prices have moved together.
Low-carbon hydrogen and e-fuels: Natural gas is a raw material for low-carbon hydrogen and e-fuels.
MTBE: Natural gas is a raw material for MTBE.
Metal products: Metal products depends on natural gas.
Monoethylene glycol: Natural gas is a raw material for monoethylene glycol.
Nuclear fission reactors: Their prices have moved together.
Offshore wind: Their prices have moved together.
Onshore wind: Their prices have moved together.
PVC: Natural gas is a raw material for PVC.
Pharmaceuticals: Pharmaceuticals depends on natural gas.
Plastic and rubber products: Plastic and rubber products depends on natural gas.
Polypropylene: Natural gas is a raw material for polypropylene.
Potash: Their prices have moved together.
Propylene: Natural gas is a raw material for propylene.
Recuperators and regenerators: Their prices have moved together.
Soda ash: Their prices have moved together.
Sodium silicate: Their prices have moved together.
Styrene: Natural gas is a raw material for styrene.
Thermal coal: Their prices have moved together.
Titanium dioxide: Their prices have moved together.
Uranium: Their prices have moved together.
Vehicles, ships, rail, aircraft: Vehicles, ships, rail, aircraft depends on natural gas.
Vinyl chloride monomer: Natural gas is a raw material for vinyl chloride monomer.
Wood products: Wood products depends on natural gas.