Carbon dioxide and Natural gas

Natural gas is a raw material for carbon dioxide; their prices have moved together.

Carbon dioxide (chemical) and Natural gas (energy): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Natural gas → Carbon dioxide

Carbon dioxide is made from natural gas: it is one of the raw materials its production routes start from.

2. Price link: feedstock link

Cost and price · Weak · Both ways

Hydrogen and ammonia made from gas release CO2 as a by-product, and gas prices decide whether those plants run. European gas moves with the CO2 index at only 0.10 monthly and 0.15 yearly, reflecting contract pricing.

• 0.10 monthly change correlation
• 0.15 12-month change correlation
• 0.17 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.