Natural gas distribution market size by 2031 (2023)

FAQs

Natural gas distribution market size by 2031? ›

Natural gas is expected to trade at 2.61 USD/MMBtu by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.19 in 12 months time. Natural gas accounts for almost a quarter of United States energy consumption.

Natural gas is expected to trade at 2.61 USD/MMBtu by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.19 in 12 months time. Natural gas accounts for almost a quarter of United States energy consumption.

Natural gas prices.

With inventories remaining above the five-year average in 2023, we expect natural gas prices to average less than $3.00/MMBtu for 2023, a more than 50% decrease from last year.

The global natural gas market size will grow from $955.74 billion in 2022 to $1025.99 billion in 2023 at a compound annual growth rate (CAGR) of 7.3%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term.

Total demand is projected to reach around 450 million metric tons, of which 326 million tons is driven by markets in Asia Pacific.

The market size, measured by revenue, of the Natural Gas Distribution industry is $216.9bn in 2023.

In the News:

Overall, natural gas production increased 5.5%, or 5.2 billion cubic feet per day (Bcf/d), compared with the 2021–22 heating season, while U.S. natural gas consumption increased 1.7% (1.6 Bcf/d) over the same period, according to data from S&P Global Commodity Insights.

Anticipating growing US natural gas production that will top prior highs, the US Energy Information Administration scaled back its near-term natural gas price forecasts, expecting Henry Hub spot prices will average $4.90/MMBtu in 2023, down from $6.42/MMBtu in 2022.

Fitch Rating's long-term natural gas price forecast on 5 December expected Henry Hub to average $2.75 per 1,000 cubic feet (Mcf) and Dutch TTF to average $5.0/Mcf in 2026 and beyond, dropping from $3/MMBtu and $10/MMBtu in 2025 respectively.

What is the global gas & LNG market outlook to 2030? ›

Their forecast called for global LNG demand to reach 575 Mt/y in 2030, an increase of 55% from current levels.

The market size, measured by revenue, of the Fuel Dealers industry is $55.8bn in 2023. What is the growth rate of the Fuel Dealers industry in the US in 2023? The market size of the Fuel Dealers industry is expected to decline -6% in 2023.

Russia. As the largest exporter and the next largest producer of natural gas in the world, Russia also holds the biggest-known natural gas reserves on the planet. The country's state-owned energy group Gazprom reportedly holds a 16.3 percent share of global natural gas reserves.

In total, East Daley forecasts nearly 30 Bcf/d of export capacity by 2030. Assuming 90% utilization, we expect 26.7 Bcf/d of LNG exports by 2028, a 260% increase over recent volumes.

In our forecast, U.S. natural gas production averages 100.9 Bcf/d for 2023, 3% more than in 2022. However, if production were to increase by more than our forecast, it could put downward pressure on natural gas prices.

Global LNG outlook for 2023 can remain strong but LNG demand growth will eventually decline, but not until 2030 – when Europe's decarbonisation and energy security policies take effect. It's not a good sign for the global LNG industry.

US gas production growth outlook in 2023 dims amid falling IRRs, slower rig activity. Falling internal rates of return for dry gas producers and a faltering rig count could mean slower-than-expected growth in US natural gas production this year as producers adapt to a weaker market outlook in 2023.

Natural gas, another commodity in the energy market segment is also getting mini futures contracts from 14 March 2023., with a lot size of 250 MMBtu (20% of 1,250 MMBtu for its larger counterpart). The tick size is INR 0.1 and the maximum order that can be placed is 60,000 MMBtu (240 contracts).

In this article

The US tied Qatar as the world's top exporter of liquefied natural gas last year, a milestone for the meteoric rise of America as a major supplier of the fuel. Both countries exported 81.2 million tons in 2022, according to ship-tracking data compiled by Bloomberg.

The wave will likely crest in 2026, with the addition of 64 million metric tons of annual liquefaction capacity—the most in the history of the global LNG industry. The supply additions will boost global liquefaction capacity by roughly 13% in a single year.

Does natural gas have a future? ›

Global gas demand is expected to rise by 3.6% in 2021 before easing to an average growth rate of 1.7% over the following three years, according to the IEA's latest quarterly Gas Market Report, which also provides a new medium-term forecast. By 2024, demand is forecast to be up 7% from 2019's pre-Covid levels.

Assuming the same annual rate of U.S. dry natural gas production in 2021 of about 34.52 Tcf, the United States has enough dry natural gas to last about 86 years. The actual number of years the TRR will last depends on the actual amount of dry natural gas produced and on changes in natural gas TRR in future years.

The residential sector uses natural gas to heat buildings and water, to cook, and to dry clothes. About half of the homes in the United States use natural gas for space heating and water heating.

The U.S. natural gas market is predicted to be oversupplied this year from a warmer-than-normal start to the year and declining demand, which are likely to suppress prices into 2024.

Will natural gas prices go up? According to Deloitte's forecast, gas prices could rise to an average of $6.35/Mcf in 2040, from an average of $5.40 in 2030. Remember, analysts' forecasts can be wrong. Always do your research before making any investment decisions.

California's shift away from gas-powered vehicles could mean as many as 80 percent of gas stations would be unprofitable by 2035. The state has some 250,000 station owners and employees.

Conclusion: how long will fossil fuels last? It is predicted that we will run out of fossil fuels in this century. Oil can last up to 50 years, natural gas up to 53 years, and coal up to 114 years.

The firm said it now expects gas prices to average slightly more than $3/MMBtu in 2023, “down sharply from our previous expectations that gas prices would remain above $4.50/MMBtu.”

The agency projected Henry Hub gas prices would average $3.40/MMBtu for full-year 2023 and $4.04/MMBtu in 2024, down from the previous month's estimates of $4.90/MMBtu in 2023 and $4.80/MMBtu in 2024. EIA's 2023 Henry Hub price outlook is down almost 50% from 2022 average prices of $6.42/MMBtu, the STEO said.

U.S. consumption of natural gas is projected to rise from 28 trillion cubic feet (Tcf) in 2015 to 34 Tcf in 2040, an average increase of about 1% annually, according to EIA's Annual Energy Outlook 2016 (AEO2016) Reference case.

Who is the largest fuel distributor in the US? ›

Sunoco LP is one of the largest independent fuel distributors in the United States, providing motor fuel to convenience stores, independent dealers, commercial customers and distributors in more than 33 states and growing.

The global industrial distribution market size was accounted at USD 7.72 trillion in 2022 and it is expected to reach around USD 11.93 trillion by 2032.

Petroleum Traders is the largest pure wholesale fuel supplier in the United States.

About SoCalGas®

As the nation's largest natural gas distribution utility, we deliver increasingly clean, safe and reliable energy to 21.1 million consumers through 5.9 million meters in more than 500 communities.

Natural gas is a fossil fuel that is found beneath the Earth's surface or it can be produced in a process called fracking. Top producers include the United States, Russia, and China. Gazprom is the largest natural gas producer with more than 18 trillion cubic feet in 2021.

In our January Short-Term Energy Outlook (STEO), we forecast the natural gas spot price at the U.S. benchmark Henry Hub will average $4.90 per million British thermal units (MMBtu) in 2023, more than $1.50/MMBtu lower than the 2022 average.

Will Gas Prices Go Up or Down in the Future? Future gas prices depend on a number of factors that aren't easy to predict, but as a benchmark, the U.S. Energy Information Administration released predictions for lower gas prices, averaging $3.32 per gallon in 2023 and $3.09 per gallon in 2024 for regular gasoline.

Henry Hub Natural Gas Spot Price is at a current level of 2.02, down from 2.04 the previous market day and down from 5.52 one year ago. This is a change of -0.98% from the previous market day and -63.41% from one year ago. The Henry Hub Natural Gas Spot Price measures the price in US Dollar per 1 Million Btu.

What will gas prices be in 2030? ›

“Expected 2023 natural gas prices are around 44% lower than forward market expectations in December,” Moody's said. That has resulted in 2023 expected power prices more than 40% lower than 2022 in some regions, according to the research note which cited S&P Global Market Intelligence data.

“With fewer wells, you have less production,” he said. Although the nosebleed level of natural gas prices now may prove an anomaly, both the California Air Resources Board and the California Energy Commission expect average natural gas prices to trend higher at least through 2030.

Global natural gas prices tumbled in the second half of 2022, from the heights reached in August. Unseasonably warm weather, improved energy efficiency, and behavioral changes in gas consumption contributed to the decline.

High demand: Unusually cold weather has pushed Californians to throttle their thermostats. Low supply: Infrastructure repairs in Texas and high gasoline demand in Canada resulted in fewer imports to California, which gets almost 90% of its natural gas from out of state.

They attribute the historic prices to a combination of things: widespread below-average temperatures, high consumption, reduced natural gas flows, and pipeline constraints. Rising natural gas prices, which are passed through at-cost directly to utility customers, are running about five times higher than last January.