In this article, we will take a look at the Country That Imports the Most Natural Gas in the World. We have also compiled a full free list of the 20 Countries that Import the Most Natural Gas in the World.
Natural Gas: A Key Player in the Global Energy Market
Natural gas, a fossil fuel energy source, is a gaseous mixture of hydrocarbons and holds the title of one of the most important sources of energy in the world. The importance stems from its lower cost, abundance, and less adverse impacts on the environment, as compared to other petroleum and coal products. The global oil and gas market was valued at $6.99 trillion in 2022, and it is projected to grow to $8.67 trillion by 2027. The market is expected to grow at an impressive Compound Annual Growth Rate (CAGR) of 4.4% during the forecast period of 2023 to 2027. This exponential growth stems from the rise in demand for sustainable and cleaner energy solutions; whereas developing countries have also been focusing on increasing the utilization of electricity and refined petroleum. Along with these, some of the other drivers of demand in this industry are increased global economic activity and higher electricity consumption.
According to an estimate by the U.S. Electrical Information Administration, the United States consumed approximately 30.28 trillion cubic feet of natural gas in the year 2021 which accounted for 32% of total electricity use in the U.S. To put into perspective, this equaled 37% of the total amount of natural gas used to generate power all over the world, according to Emergen Research. This demand is only projected to increase globally with the International Energy Agency forecasting the demand for natural gas to grow to about 4.19 trillion cubic meters at a year-over-year growth rate of 2.5% in 2024.
To meet the rising demand, investments in the global oil and gas market have been also increasing. The global oil and gas upstream capital expenditures increased year-on-year by 39% in 2022 to $499 billion which is the highest expenditure reported since 2014. To sustain the supply in the industry, the investments are forecast to increase further by 2030 and reach a whopping $640 billion. While all countries are trying to match the growing natural gas demand, the US stands as the biggest producer of gas. The US doubled its natural gas production from 2005 to 2022. In the year 2022, the US produced a record high of natural gas equaling 94.7 billion cubic feet per day. With this, the U.S. was put on the global map with a market share of around 24.2%, ahead of both Russia and Iran.
Thus, companies around the world have also begun a rigorous hunt for natural gas deposits in light of the growing market and demand for natural gas. Two of the biggest names in the industry are Chevron Corporation (NYSE:CVX), and Shell plc (NYSE:SHEL).
Chevron Corporation (NYSE:CVX)
Chevron Corporation (NYSE:CVX) is one of the world’s leading integrated energy companies and engages in the provision of administrative, financial management, and technology support for energy and chemical operations. Despite being one of the biggest companies in the natural gas industry, the company reported a 65% decrease in their net income, from $6.4 billion a year ago, to $2.3 billion, for the quarter ending on 31st December 2023.
Shell plc (NYSE:SHEL)
Shell plc (NYSE:SHEL) is also involved in the exploration, production, refining, and marketing of natural gas and oil. The British multinational oil and gas company is one of the most profitable natural gas stocks. Shell announced its first quarter results of 2024 marked by an impressive performance. The company reported an adjusted earnings figure of a staggering $7.7 billion mark, which was an increase, as compared to $7.3 billion earnings recorded in the previous quarter. Furthermore, adjusted EBITDA also saw a rise as it grew to $18.7 billion from $16.3 billion in the previous quarter.
A closeup of the Rio Grande LNG terminal facility, showing its massive scale.
Methodology
For the purpose of this ranking, we obtained data from the Energy Information Administration (EIA) on the natural imports per country in the year 2022. Once we had the data on the imports for each country, we arranged it in descending order and picked the top country with the highest level of imports.
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1. Is China the Country that Imports the Most Natural Gas in the World?
Natural Gas Imports in 2022: 5042.4 billion cubic feet
China has increased its annual natural gas production every year since 1989 but despite this, the country is unable to meet its demand for natural gas with the locally produced gas. In 2022, the country produced a record high of 7.7 trillion cubic feet. China’s natural gas consumption peaked in 2021 at 12.8 trillion cubic feet but then in 2022, natural gas consumption declined by 1% which was the first decline since 1990, according to the International Energy Agency. According to its 14-year plan, the country plans on increasing its natural gas storage capacity to approximately 2.0 trillion cubic feet –2.1 trillion cubic feet by 2025, according to EIA.
You can see the full free list by going to the 20 Countries That Import the Most Natural Gas in the World.
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Disclosure: None. This article is originally published at Insider Monkey
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