Global natural gas energy - statistics & facts
Natural gas is the world’s second largest source of electricity generation. Following coal, natural gas is responsible for more than one-fifth of all power produced. This is in spite of efforts to introduce more renewable sources to the power sector, with natural gas energy generation having reached an all-time high. Construction costs for natural gas power plants are often lower than for other major technologies, either due to already established infrastructure or the more straightforward nature of operations within such power stations.
Although Europe has tried to move away from an over-reliance on natural gas, it still accounts for a sizable portion of the natural gas power capacity pipeline. However, the most power plant additions are expected to occur in the Asia-Pacific region.
Natural gas supply and prices
Natural gas is a versatile and widely used energy source not just for electricity generation, but also as a heating and cooking fuel and for chemical manufacturing. As such, global natural gas demand has seen a net increase in the past two decades, partly driven by greater electricity demand. Supply constraints are immediately reflected in changes to the natural gas price index and, in turn, affect power prices, as was the case in 2021 and 2022. Since then, prices have mostly stabilized. European countries have some of the highest natural gas prices in the world, not only for households but also for industrial customers. The comparison between natural gas producers and importer countries is especially stark, with some countries experiencing prices five times as high as the United States, the world’s largest natural gas producer.Largest natural gas producing countries are also the largest energy users
In 2023, global gas power generation climbed to a peak of more than 6,600 terawatt-hours, up from some 5,000 terawatt-hours a decade earlier. The United States has by far the highest gas power capacity of any country, and at over 540 gigawatts accounts for more than one fourth of operational capacity worldwide.Although Europe has tried to move away from an over-reliance on natural gas, it still accounts for a sizable portion of the natural gas power capacity pipeline. However, the most power plant additions are expected to occur in the Asia-Pacific region.
