In this article, we are going to discuss the top 15 natural gas producing countries in the world in 2024. You can skip our detailed analysis of the global oil and gas market, the recent major natural gas discoveries, and the use of AI in the oil and gas industry, and go directly to the Top 5 Natural Gas Producing Countries in the World in 2024.
Natural gas – an odorless, gaseous mixture of hydrocarbons, primarily made up of methane – is one of the most important sources of energy in the modern world. It is not only abundant and affordable, but also relatively less dangerous for the environment compared to coal and petroleum products. The global production of gas has increased from 3326.2 billion cubic meters in 2012 to 4043.8 bcm in 2022 – an uptick of almost 21.6%. However, production decreased by a marginal 0.2% from 2021 to 2022, mainly due to the curtailment of output from Russia.
Global Oil and Gas Market:
As we mentioned in our article – 15 Countries with the Largest Proven Oil Reserves in the World – the global oil and gas market was valued at $6.99 trillion in 2022, and is expected to grow to $8.67 trillion by 2027, with a CAGR of 4.4% during the forecast period. The largest region in the global oil and gas market share is Asia Pacific, with North America coming in second.
The primary factors driving the growth of the industry include the rising demand for oil and gas, growing competition in the industry, financial capital, and public scrutiny. Furthermore, the rising oil and gas exploration activities and the increase in prices globally are also anticipated to drive the industry’s growth.
Major Natural Gas Discoveries:
According to the International Energy Agency, the global natural gas demand is projected to grow by 2.5% YoY in 2024 to about 4.19 trillion cubic meters. To meet this increasing demand, gas companies around the globe have intensified the hunt for new deposits despite repeated calls by the United Nations to phase out hydrocarbons to avoid a climate crisis.
The International Energy Forum reported that the global oil and gas upstream capital expenditures increased year-on-year by 39% in 2022 to $499 billion, the highest level since 2014 and the largest YoY gain in history. Furthermore, this investment is expected to reach $640 billion in 2030 to ensure adequate supplies.
A major natural gas discovery was recently made by Sinopec, the second-largest energy company in China, in the Sichuan basin in the country’s southwest. The Hexingchan Gas Field boasts 133 bcm of proven gas reserves, as validated by China’s Ministry of Natural Resources. The gigantic reserve marks the birth of yet another sizable tight gas field as the state-owned industry giant steps up drilling deep and hard-to-extract reservoirs.
Similarly, there were two major natural gas discoveries also in Indonesia late last year. The first one was in October by the Italian multinational energy company Eni, which claims to have tapped a reservoir that contains an estimated 5 trillion cubic feet of natural gas, with another possible 5 trillion cubic feet in the surrounding area, off the coast of East Kalimantan.
The second significant discovery in the Southeast Asian country was made in December by the UAE’s Mubadala Energy, which discovered a reservoir in the South Andaman area, possibly containing 3.3 trillion cubic feet in recoverable reserves. This aggressive exploration is in line with Indonesia’s target of 12 billion cubic feet in daily natural gas production by 2030.
Artificial Intelligence in the Oil and Gas Industry:
Major players in the oil and gas industry are looking into big data analytics and AI to enhance decision making abilities and thus profits. AI will allow these companies to make better drilling and operational decisions, assist them in overcoming their challenges, and position them for long-term success.
Shell plc (NYSE:SHEL) has deployed AI across its entire oil and gas supply chain, with over 160 active AI projects. It uses reinforcement learning in its exploration and drilling programme to reduce gas extraction costs. From machine learning to computer vision, deep learning to virtual assistants and autonomous vehicles to robotics, Shell plc (NYSE:SHEL) has been focused on a range of technologies that have supported advances in AI. In fact, the oil and gas giant also offers an AI Residency Program, which gives data scientists and AI engineers experience with several AI projects across the company.
Shell plc (NYSE:SHEL) ranks among the Biggest Natural Gas Companies in the World.
The Exxon Mobil Corporation (NYSE:XOM) is another major player that has prominently adopted a digital mindset in the oil and gas sector. The Texas-based company has collaborated with IBM’s Data Science and AI Elite Team and seismic experts to use AI to interpret and integrate data from siloed systems into one repository, which is hosted on a multi-cloud environment. The Exxon Mobil Corporation (NYSE:XOM) is also enhancing its customers’ experience at the pump by offering mobile apps for payment options, customer loyalty programs, and comprehensive car maintenance experiences.
The Exxon Mobil Corporation (NYSE:XOM) is included among the Best Recession Dividend Stocks to Buy.
With that said, here are the Top Gas Producing Countries in the World.
Oleksandr Kalinichenko / Shutterstock.com
Methodology:
To collect data for this article, we have referred to the Statistical Review of World Energy 2023, looking for the Largest Natural Gas Producing Countries. The following countries have been ranked by their total gas production in 2022, including natural gas produced for Gas-to-Liquids transformation but excluding gas flared or recycled, measured in billion cubic meters (bcm). Since natural gas production doesn’t usually change very much from year to year, the relative ordering of the countries remains generally the same also in 2024.
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15. Indonesia
Total Natural Gas Production in 2022: 57.7 bcm
Indonesia’s natural gas output has fallen almost consistently over the last decade, from 78.3 bcm in 2012 to 57.7 bcm in 2022 – a decrease of 26.3%. However, the country still remains one of the Largest LNG Exporters in Southeast Asia, with 16.22 million metric tons of LNG exported in 2023, equivalent to 4.78% of the overall global LNG exports.
14. United Arab Emirates
Total Natural Gas Production in 2022: 58 bcm
According to the U.S. Energy Information Administration, the UAE holds the seventh-largest proven reserves of natural gas in the world at over 215 trillion cubic feet. The Emirates’ largest gas fields are located in Abu Dhabi, with the Abu Dhabi National Oil Company being the largest producer.
Although the UAE ranks among the Biggest Oil Producers in the World, the COP 28 host claims that it is investing ‘way more’ into renewable energy than in oil and gas. In 2022, the United Arab Emirates invested a whopping $36 billion in overseas renewable energy projects, highlighting its commitment to a greener future.
13. Egypt
Total Natural Gas Production in 2022: 64.5 bcm
Egypt’s natural gas production received a massive boost in 2017, when the country’s Zohr field began operations. The gigantic offshore gas field is the largest not only in Egypt, but the whole Mediterranean Sea, and is estimated to contain up to 30 trillion cubic feet of recoverable gas reserves.
The North African country also exported some 8 million tons of LNG in 2022, worth $8-8.5 billion, with around 80% of it going to Europe.
12. Turkmenistan
Total Natural Gas Production in 2022: 78.3 bcm
Turkmenistan, one of the five Caspian Sea littoral countries, has garnered much international attention since last summer, when it announced that it was open to the development of a pipeline to carry its precious gas across the Caspian and on to Europe. The most significant interest was shown by Hungary, which has already signed a framework gas supply agreement with the Central Asian country. This comes at a time when the E.U. is scrambling to find alternative sources of energy, as it tries to replace the vast supplies from Russia.
Around half of Turkmenistan’s total natural gas production is exported, with most of it going to China.
11. Malaysia
Total Natural Gas Production in 2022: 82.4 bcm
Malaysia is one of the Top Gas Producing Countries in the Asia Pacific region, with natural gas deposits present in all three regions comprising Peninsular Malaysia, Sabah, and Sarawak. According to the Malaysian Gas Association, the country hosts around 87.8 trillion cubic feet of gas reserves, which at current production rates, should last for at least another 36 years.
Malaysia exported $18.4 billion worth of liquified natural gas in 2022, putting it among the Largest LNG Exporting Countries in the World.
10. Algeria
Total Natural Gas Production in 2022: 98.2 bcm
Although Algeria’s natural gas production decreased slightly by 2.9% in 2022 when compared to the previous year, it is still the Largest Natural Gas Producing Country in Africa. It was announced in February that Algeria’s state-owned oil and gas company, Sonatrach, has signed a medium-term contract with gas supplier VNG to supply pipeline natural gas to Germany.
9. Saudi Arabia
Total Natural Gas Production in 2022: 120.4 bcm
Saudi Aramco, the state-owned oil and gas company, has massively increased its daily gas processing capacity from 2 billion standard cubic feet per day in 2000 to around 18 billion scfd in 2022. The industry giant aims to spend $110 billion in developing the Jafurah gas field, a move that could help double its output by 2030 and turn Saudi Arabia into a gas exporting country.
Saudi Aramco boasted a massive revenue of $535.2 billion in 2022, up 49% from 2021. The firm also registered a profit of $161 billion the same year, the largest annual profit ever recorded by an oil and gas company, fuelled by soaring energy prices and rising global demand.
8. Norway
Total Natural Gas Production in 2022: 122.8 bcm
Norwegian production of natural gas accounts for approximately 3% of the overall global production, putting it among the Top 10 Natural Gas Producing Countries. Norway is also the largest supplier of gas to Europe, having exported around 109 billion cubic meters to the continent in 2023.
In June 2023, the Norwegian government gave its approval to oil companies to develop 19 oil and gas fields with investments exceeding $18.51 billion, part of the Scandinavian nation’s strategy to extend production for decades to come.
7. Australia
Total Natural Gas Production in 2022: 152.8 bcm
Australia ranks 7th in our list of the Largest Gas Producing Countries in 2024, with Western Australia being the Top Natural Gas Producing State, accounting for about 60% of the overall production. The Land Down Under exported $65.7 billion worth of LNG in 2022, delivering a record-breaking 81.2 million tonnes during the year.
6. Qatar
Total Natural Gas Production in 2022: 178.4 bcm
Qatar, one of OPEC’s longest-standing members, left the organization in January 2019 to shift more of its resources and investment from oil production to natural gas and LNG infrastructure projects. According to the U.S. Energy Information Administration, Qatar’s earnings from its hydrocarbon sector accounted for 81% of the country’s total government revenues in 2021, up from 77% in 2020.
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Disclosure: None. Top 15 Natural Gas Producing Countries in the World in 2024 is originally published on Insider Monkey.