# Natural gas: Overview

Power, heat and the hydrogen inside fertiliser

Source page: https://www.materialinsights.org/energy/natural_gas/overview/

What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.

#### Key uses

| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| **Power generation** | 37% | about 1,500 bcm a yearbasis | Combined-cycle gas turbines reach about 60% efficiency, are cheap and quick to build, ramp up and down in minutes to balance wind and solar, and emit roughly half the CO2 of coal per kWh. Where gas is cheap, as in the US and Middle East, it is the default fuel for new thermal plants. IEA gas balances (rounded, indicative); Energy Institute Statistical Review 2025 | Coal (where cheaper, as in India and China) Wind and solar plus battery storage Nuclear and hydro Demand response for peaks |
| **Industrial heat and steam** | 22% | about 900 bcm a yearbasis | Gas burns cleanly with precise temperature control, which suits ceramics, glass, food processing, refining and chemicals. Piped gas needs no on-site storage. In India, city gas networks are pushing it into Morbi ceramics and other clusters to replace coal and petcoke. IEA gas balances (rounded, indicative) | Coal and petcoke (cheaper, dirtier) Electric boilers and industrial heat pumps Biomass Hydrogen (pilot) |
| **Residential and commercial heating and cooking** | 21% | about 870 bcm a yearbasis | Where a distribution grid exists, gas is the cheapest way to heat buildings through cold winters, which is why European, US, Russian and northern Chinese demand peaks in winter. In India piped natural gas and CNG are expanding through city gas distribution licences. IEA gas balances (rounded, indicative) | Heat pumps District heating LPG and heating oil off-grid Electric cooking |
| **Chemical feedstock (ammonia, methanol, hydrogen)** | 8% | about 330 bcm a yearbasis | Methane is the cheapest source of hydrogen, made by steam reforming, and hydrogen plus nitrogen gives ammonia for urea fertiliser. India's fertiliser plants are the country's largest gas users, and urea's subsidised price depends on pooled gas costs. IEA gas balances (rounded, indicative) | Coal gasification (China, some Indian projects) Electrolytic hydrogen from renewables Imported ammonia and urea |
| **Energy-sector own use, LNG plants, pipelines and transport fuel** | 12% | about 500 bcm a yearbasis | Gas fields, LNG trains and pipeline compressors burn part of the gas they move; liquefaction alone uses roughly a tenth of feed gas. CNG and LNG also fuel buses, taxis and trucks, notably in India, Pakistan, Iran and China. Residual share, indicative | Electric drives for compressors Diesel and electric vehicles for transport |

 Shares are approximate world end-use shares (IEA balances, rounded); the power share is cross-checked against Energy Institute 2024 gas-fired generation. Total demand is 4,128 bcm (Energy Institute 2024).

#### From mine to user

1. **Exploration and appraisal** Seismic and wells find gas either alone (non-associated) or dissolved in oil (associated). Qatar's North Field, shared with Iran's South Pars, is the world's largest single gas field.
2. **Production and processing** Raw gas is dried and stripped of CO2, hydrogen sulphide and liquids (ethane, LPG, condensate). World output was 4,124 bcm in 2024, a quarter of it in the US (Energy Institute).
3. **Pipeline transmission** High-pressure pipelines carry most gas, inside countries and across borders (Norway to Europe, Russia to China, Turkmenistan to China). GAIL runs most of India's trunk network.
4. **Liquefaction and shipping (LNG route)** Gas is chilled to minus 162 C, shrinking 600 times, and shipped in tankers of about 170,000 m3. World LNG trade was about 544 bcm in 2024, led by the US, Qatar and Australia at about 107-115 bcm each (Energy Institute).
5. **Regasification and storage** Import terminals such as Petronet's Dahej and Kochi warm LNG back to gas; underground storage in depleted fields, aquifers and salt caverns covers winter peaks.
6. **Distribution** Local networks deliver gas to homes, CNG stations and factories; in India city gas distribution companies such as IGL, MGL and Gujarat Gas run licensed areas.
7. **End use** Burned in power plants, boilers, kilns and stoves, or reformed into hydrogen for ammonia and methanol.

#### Price movement snapshot 2026-10-25
 Dutch TTF gas futures (ICE Endex, front month) 93.9 EUR/MWh Close 2026-10-23 · Yahoo Finance 1 week **+7.2%** 6 months **+110.2%** World production 4,124 billion m³, 2024 Largest producer United States 25.05% of world

#### Three things to know

- For equal energy, gas fills about 1,000 times the volume of oil; liquefying it cuts its volume about 600-fold (Geman).
- Russian pipeline gas to Europe fell from 191 billion cubic metres in 2019 to 51 billion in 2024 (Energy Institute).
- US LNG exports rose from under 1 billion cubic metres in 2015 to 115 billion in 2024 (Energy Institute).

#### Top recent news snapshot 2026-10-25, last 30 days

- [The world is facing an almighty LNG crunch](https://news.google.com/rss/articles/CBMiowFBVV95cUxONXNsMDByakxRNlRNcmNfbUdCalRQMmM3aHZBQ0l5VDRtM0E4Qm9nXzVTWm5ZbmJyUzN5UFR5R29pemVaZVJ3UFpJejFkalYxejFXOXhYYVdqdGF6MHRocVY5dFpGbGRGT2NVZXM4WkhaZmdLVDA2WXhZbm5PQVNzY1BoNTRmQUI5cHo1VlhpT25QQWJYZFNRdllMNUVscWFEcXBJ?oc=5)The Economist · 2026-10-04
- [India's Gas Demand Drops as Iran War Hikes LNG Spot Prices](https://news.google.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?oc=5)Crude Oil Prices Today | OilPrice.com · 2026-10-14
- [Asian LNG Prices Jump to Highest Since 2022 on Tanker Strikes](https://news.google.com/rss/articles/CBMisgFBVV95cUxNSk9xS1JmRXljd3p0OTcxNUZvdmRlaFdrTmF2Y2dHTWJaUnVWOEpNeU4xN1hrSjZ2QWd0QUduY0R5bGFNT2d5NnhXMEhuRmNhM05jTEo0YWtXbFdISDQwbkpuZGVxMXNybnZ5Z0pNeVBzbVlINUlVV0xRbElMSjlyQjlhUm43WGNyTGgwazJFVmJielMtM2xOS0taRDZXVmpyRll3VnFBTUVPX3d4QVJJZ2Vn?oc=5)Bloomberg.com · 2026-10-20
- [Shell backs $23 billion LNG Canada expansion in boost to Carney's ‘energy superpower’ push](https://news.google.com/rss/articles/CBMigAFBVV95cUxNUnppZmdNQ0xKN2NiYU5IY240QmVlUTNrck9uTVFMdnFwSm5UQTR0eFFnMVEwSl9nZVFNYTc5NU9LeHBTQWRaTGp0Tm90eW1wR2xMeXpBVGN3UE1yUG5wQ3hDNG5Eb0toeVFOd2ZMTjlmSjEtMndlVGprMFZ0Rm9hY9IBhgFBVV95cUxOMkR2REJIYjBOeko0R2FPUXpFdy1MNmRES2l6ZElrRDRvUDNuRWxndmpRYWYwLVVqc0M4QzhXOFplR01CekhaajVaMi1pXzNLbmhFQ1VoQmpmTExZOVpCelRMczBvMGo5dU5pdmw1MGVSQ2JpYlN6ZEZ2Mi1qTE9HN1Z5QnlBdw?oc=5)CNBC · 2026-09-29
- [Tanzania close to finalising $42 billion LNG deal, finance minister says](https://news.google.com/rss/articles/CBMiuwFBVV95cUxOYUs4VE1xX2hBcWZzV3k2UDFVNUdpQnN0U0R0NjZKbFcxSi1TaHJmYVgzTElYcWRhaWdwaDRFdXMtSVF0WDBxMkgzTmVVNnZ0MnNSUml3UFhxMGthUUp6WFJ0NzktZGZxdk0tQl92VFlrYkNhcDB1T2V0ckpsVEZqN2xlellWNGFaRDJVTTlnQW9vV3ZvdU9pRUN5a2Q5bDVkX01pTnIyb2pLSUZRcUlQemx3WWtEak1fOXJZ?oc=5)Reuters · 2026-10-13

#### Chemicals made from it
[HNO3 Nitric acid](https://www.materialinsights.org/chemicals/nitric_acid/)[H2O2 Hydrogen peroxide](https://www.materialinsights.org/chemicals/hydrogen_peroxide/)[H2 Hydrogen](https://www.materialinsights.org/chemicals/hydrogen/)[CO2 Carbon dioxide](https://www.materialinsights.org/chemicals/carbon_dioxide/)[NH3 Ammonia](https://www.materialinsights.org/chemicals/ammonia/)[Ur Urea](https://www.materialinsights.org/chemicals/urea/)[AN Ammonium nitrate](https://www.materialinsights.org/chemicals/ammonium_nitrate/)[AS Ammonium sulphate](https://www.materialinsights.org/chemicals/ammonium_sulphate/)[DAP DAP and MAP](https://www.materialinsights.org/chemicals/dap_map/)[C2H4 Ethylene](https://www.materialinsights.org/chemicals/ethylene/)[C3H6 Propylene](https://www.materialinsights.org/chemicals/propylene/)[SM Styrene](https://www.materialinsights.org/chemicals/styrene/)[MeOH Methanol](https://www.materialinsights.org/chemicals/methanol/)[HCHO Formaldehyde](https://www.materialinsights.org/chemicals/formaldehyde/)[AcOH Acetic acid](https://www.materialinsights.org/chemicals/acetic_acid/)[MTBE MTBE](https://www.materialinsights.org/chemicals/mtbe/)[EO Ethylene oxide](https://www.materialinsights.org/chemicals/ethylene_oxide/)[MEG Monoethylene glycol](https://www.materialinsights.org/chemicals/meg/)[VCM Vinyl chloride monomer](https://www.materialinsights.org/chemicals/vcm/)[ACN Acrylonitrile](https://www.materialinsights.org/chemicals/acrylonitrile/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[HDPE High-density polyethylene](https://www.materialinsights.org/chemicals/hdpe/)[PP Polypropylene](https://www.materialinsights.org/chemicals/polypropylene/)[PVC PVC](https://www.materialinsights.org/chemicals/pvc/)[PMMA Acrylics (PMMA)](https://www.materialinsights.org/chemicals/pmma/)[EPDM EPDM](https://www.materialinsights.org/chemicals/epdm/)[PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/)[Gly Herbicides](https://www.materialinsights.org/chemicals/herbicides/)[Amn Specialty amines and ethanolamines](https://www.materialinsights.org/chemicals/specialty_amines/)[Lys Amino acids (lysine, methionine)](https://www.materialinsights.org/chemicals/amino_acids/)

#### Read the tabs
[Extraction](https://www.materialinsights.org/energy/natural_gas/extraction/)[Production](https://www.materialinsights.org/energy/natural_gas/production/)[Stocks](https://www.materialinsights.org/energy/natural_gas/stocks/)[Cycles](https://www.materialinsights.org/energy/natural_gas/cycles/)[Trading](https://www.materialinsights.org/energy/natural_gas/trading/)[Movement](https://www.materialinsights.org/energy/natural_gas/movement/)[Criticality](https://www.materialinsights.org/energy/natural_gas/criticality/)[Characteristics](https://www.materialinsights.org/energy/natural_gas/characteristics/)[Emissions](https://www.materialinsights.org/energy/natural_gas/emissions/)

## Other sections

- [Summary](https://www.materialinsights.org/energy/natural_gas/index.md)
- [Energy overview](https://www.materialinsights.org/energy/natural_gas/energy/index.md)
- [Correlation](https://www.materialinsights.org/energy/natural_gas/correlation/index.md)
- [How energy resides](https://www.materialinsights.org/energy/natural_gas/resides/index.md)
- [Abundance](https://www.materialinsights.org/energy/natural_gas/abundance/index.md)
- [Fluctuation in time](https://www.materialinsights.org/energy/natural_gas/time/index.md)
- [Across the Earth](https://www.materialinsights.org/energy/natural_gas/geography/index.md)
- [Impact on nature](https://www.materialinsights.org/energy/natural_gas/nature/index.md)
- [Extraction](https://www.materialinsights.org/energy/natural_gas/extraction/index.md)
- [Production](https://www.materialinsights.org/energy/natural_gas/production/index.md)
- [Stocks](https://www.materialinsights.org/energy/natural_gas/stocks/index.md)
- [Cycles](https://www.materialinsights.org/energy/natural_gas/cycles/index.md)
- [Trading](https://www.materialinsights.org/energy/natural_gas/trading/index.md)
- [Movement](https://www.materialinsights.org/energy/natural_gas/movement/index.md)
- [Criticality](https://www.materialinsights.org/energy/natural_gas/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/energy/natural_gas/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/energy/natural_gas/emissions/index.md)
- [Relationships](https://www.materialinsights.org/energy/natural_gas/links/index.md)