# Carbon dioxide and Natural gas

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

Source page: https://www.materialinsights.org/links/carbon-dioxide-and-natural-gas/

[Carbon dioxide](https://www.materialinsights.org/chemicals/carbon_dioxide/) (chemical) and [Natural gas](https://www.materialinsights.org/energy/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.