Natural gas is one of the most important energy resources in the world today. It heats homes, generates electricity, and serves as an important fuel and feedstock for industry. But where does all of this natural gas come from? Which countries are the leading producers and exporters of natural gas globally?
Natural gas is a fossil fuel that formed deep beneath the earth’s surface over millions of years. It is composed primarily of methane, but also contains varying amounts of other hydrocarbons like ethane, propane, butane, and pentanes. Natural gas is colorless, shapeless, and odorless in its pure form.
Natural gas is cleaner burning than other fossil fuels like oil and coal. When burned, it emits 45% less carbon dioxide than coal and 30% less than oil. This makes it an attractive transition fuel as the world moves towards greater adoption of renewable energy sources like wind and solar. However, natural gas is still a non-renewable resource and does produce greenhouse gas emissions.
The natural gas industry encompasses the exploration, extraction, refining, transport, storage, and marketing of natural gas. The industry includes mega-corporations as well as state-owned companies. Trade in liquefied natural gas (LNG) – natural gas that has been converted to liquid form for ease and safety of storage or transport – is also a major part of the international gas market.
Top Natural Gas Producers
In 2021, total global natural gas production reached about 4,300 billion cubic meters. The United States and Russia have long vied for the top spot as the world’s largest producer of natural gas.
United States
The United States has been the top natural gas producer in the world since 2009. In 2021, the US produced over 990 billion cubic meters of natural gas, representing around 23% of total global output. The US produces nearly as much natural gas as the next three highest-producing countries combined (Russia, Iran, and Qatar).
Natural gas production in the US grew rapidly from 2005 to 2019 due to the shale gas boom. Hydraulic fracturing techniques unlocked vast new reserves of shale gas, especially in Texas, Pennsylvania, and North Dakota. US liquefied natural gas (LNG) export capacity has also expanded significantly in recent years.
Russia
Russia has the largest proved reserves of natural gas in the world and is the second largest producer after the United States. In 2021, Russia produced around 762 billion cubic m of natural gas, accounting for over 17% of total global output. The country’s major natural gas fields are located in Western and Eastern Siberia as well as in the Yamal Peninsula.
Gazprom, a majority state-owned company, dominates the Russian natural gas sector. Russia utilizes an extensive network of natural gas pipelines to supply both domestic and European markets. Europe relies on Russia for over 40% of its imported natural gas.
Iran
Iran holds the world’s second largest proven reserves of natural gas after Russia. In 2021, Iran produced about 262 billion cubic meters, making it the third largest global producer with a 6% market share. The giant South Pars / North Dome Gas-Condensate field in the Persian Gulf supplies the bulk of Iran’s natural gas.
Iran historically lagged in natural gas development due to international sanctions. The lifting of sanctions in 2015 enabled increased investment and production. However, natural gas exports remain limited despite the huge reserves. Iran mainly consumes its gas production domestically.
Qatar
Qatar is fourth in global natural gas production, having produced 181 billion cubic m in 2021. The tiny Middle Eastern nation holds the third largest natural gas reserves after Russia and Iran. The massive offshore North Field provides the majority of Qatar’s natural gas.
Unlike Iran, Qatar has capitalized on its natural gas reserves by developing extensive liquefaction and export infrastructure. The country exports over 70% of its natural gas production in the form of LNG. In 2021, Qatar was the world’s largest LNG exporter.
| Country | 2021 Production (billion cubic m) | Share of Global Production |
|---|---|---|
| United States | 990 | 23% |
| Russia | 762 | 17% |
| Iran | 262 | 6% |
| Qatar | 181 | 4% |
Other Major Producing Countries
Several other countries also play important roles in global natural gas markets:
Canada
Canada produced about 175 billion cubic m of natural gas in 2021, making it the world’s fifth largest producer. Most of Canada’s natural gas reserves are located in Alberta and British Columbia. As US LNG export capacity continues to grow, Canada is likely to divert more of its gas production toward liquefaction and export instead of domestic use and pipeline exports to the US.
China
China has ramped up natural gas production dramatically over the last decade to help meet growing domestic energy demand and shift away from coal. Chinese output reached 192 billion cubic m in 2021. However, demand is rising so rapidly that China still needs to import over 40% of the natural gas it consumes.
Australia
Australia produced 143 billion cubic m of natural gas in 2021, ranking seventh globally. The country is the second largest LNG exporter behind Qatar, with most exports destined for Asian markets like Japan, China, and South Korea. However, domestic challenges like labor shortages, environmental opposition, and high production costs threaten future gas and LNG expansion in Australia.
Norway
Norway produced 122 billion cubic m of natural gas in 2021. The Norwegian continental shelf contains abundant reserves of both oil and natural gas. Norway has been a steady gas supplier to the European market for decades. The country is also now the third largest supplier of LNG to Europe, after Qatar and the US.
Algeria
Algeria has the tenth largest proved gas reserves globally. The country produced 97 billion cubic m of natural gas in 2021. Algeria also plays an important role as a gas exporter to Europe. However, both pipeline and LNG exports have been declining in recent years due to gas field maturation.
Major Natural Gas Exporters
Only a handful of the top natural gas producing countries are also leading gas exporters. The ability to export depends on geographic location, access to liquefaction infrastructure, and domestic energy policies. The leading natural gas exporters in 2021 were:
| Country | 2021 Natural Gas Exports (billion cubic m) |
|---|---|
| Russia | 210 |
| Qatar | 122 |
| United States | 117 |
| Australia | 112 |
| Norway | 109 |
Russia exports natural gas to Europe via pipeline. Qatar, the US, and Australia lead global LNG exports. Norway is a major supplier of natural gas via pipeline to the European market.
Conclusion
The United States surpassed Russia as the world’s largest natural gas producer over a decade ago, thanks to the shale gas boom. However, Russia remains a close second. Iran, Qatar, and Canada round out the top five producing countries.
Qatar has leveraged its enormous reserves into global LNG leadership. Russia utilizes its pipelines to export natural gas to Europe. The United States and Australia have become major LNG exporters as well in recent years. Meanwhile, emerging Asian importers like China and India continue to drive growth in global natural gas demand.
The natural gas industry will continue evolving as economic, geopolitical, and environmental factors shift. Liquefaction infrastructure, pipeline networks, supply flexibility, and stability of demand will determine the global competitive landscape going forward.