The annual average Henry Hub price declined to 2.2 U.S. dollars per million British thermal unit in 2024. According to a forecast released in February 2025, Henry Hub natural gas prices will more than double by 2026 amid greater demand forecast.

Natural gas prices decreased across all major regions in 2023, as supply caught up to higher demand. In Japan, LNG sold for an average of 12.5 nominal U.S. dollars per million British thermal units. Meanwhile, the United States, as the largest natural gas producer worldwide, has significantly lower prices for the fossil fuel. The U.S. has had lower natural gas prices than Europe for much of the past four decades.

LNG on the rise LNG is expected to shape much of future natural gas trade. Although pipelines have been the preferred method of transportation for many decades, as Europe shifts away from Russia as its main gas supplier, LNG has become more in demand. The global LNG trade volume has already exceeded 500 billion cubic meters per year, and is expected to continue growing. Countries in Asia have some of the highest landed prices for liquefied natural gas worldwide.

Natural gas benchmarks Some of the most closely followed natural gas price benchmarks are the U.S. Henry Hub and the Dutch TTF. The former is an important indicator of the state of the natural gas industry in the U.S., while the latter reflects natural gas market developments in Europe and potential repercussions for consumers.

In the fourth quarter of 2023, the price of liquefied natural gas in India reached 589 USD/MT by December. Similarly, in Germany, the liquefied natural gas prices hit 654 USD/MT during the same month in 2023.

In 2023, the price of natural gas in Europe reached 13.1 constant U.S. dollars per million British thermal units, compared with 2.5 U.S. dollars in the U.S. This was a notable decrease compared to the previous year, which had seen a steep increase in prices due to an energy supply shortage exacerbated by the Russia-Ukraine war. Since 1980, natural gas prices have typically been higher in Europe than in the United States and are expected to remain so for the coming two years. This is due to the U.S. being a significantly larger natural gas producer than Europe.

What is natural gas and why is it gaining ground in the energy market? Natural gas is commonly burned in power plants with combustion turbines that generate electricity or used as a heating fuel. Given the fact that the world’s energy demand continues to grow, natural gas was seen by some industry leaders as an acceptable "bridge-fuel" to overcome the use of more emission-intensive energy sources such as coal. Subsequently, natural gas has become the main fuel for electricity generation in the U.S., while the global gas power generation share has reached 22 percent.

How domestic production shapes U.S. natural gas prices The combination of hydraulic fracturing (“fracking”) and horizontal drilling can be regarded as one of the oil and gas industry’s biggest breakthroughs in decades, with the U.S. being the largest beneficiary. This technology has helped the industry release unprecedented quantities of gas from deposits, mainly shale and tar sands that were previously thought either inaccessible or uneconomic. It is forecast that U.S. shale gas production could reach 35 trillion cubic feet in 2050, up from 1.77 trillion cubic feet in 2000.

Asia Pacific is expected to become the greatest natural gas market by 2050. In 2023, the demand for natural gas was highest in North America at approximately one trillion cubic meters (tcm). This is forecast to change as Asia Pacific's demand for natural gas increases from 871 billion cubic meters in 2023 to almost 1.6 tcm in 2050. Europe is the only region that is forecast to see a continuous decline in natural gas demand in the upcoming decades.

Compressed Natural Gas Market size was valued at USD 160.08 Billion in 2023 and is projected to reach USD 667.78 Billion by 2030, growing at a CAGR of 17.2% during the forecast period 2024-2030.

Global Compressed Natural Gas Market Drivers

The market drivers for the Compressed Natural Gas Market can be influenced by various factors. These may include:

Advantages for the environment and lowering emissions: Because it emits less pollutants such carbon dioxide (CO2), nitrogen oxides (NOx), and particle matter than conventional fossil fuels, compressed natural gas (CNG) is seen to be a cleaner fuel option. CNG is becoming more and more popular in transportation due to growing concerns about environmental sustainability.

Governmental Guidelines and Promotions: In an attempt to lower greenhouse gas emissions and air pollution, the government is encouraging the use of alternative fuels, such as compressed natural gas (CNG), through strict laws and incentives.

Economic viability and cost savings: Because CNG is frequently more affordable than conventional fuels, fleet managers and corporations are switching to CNG-powered cars to lower fuel expenses and improve their financial sustainability.

Natural Gas Amounts and Domestic Availability: By utilizing local resources and lowering dependency on imported oil, regions with ample natural gas reserves and an emphasis on energy independence may encourage the usage of CNG.

Expanding Automobile Sector: The need for alternative fuels like CNG is driven by the growth of the transportation industry, which includes buses, trucks, and commercial vehicles. This demand is particularly strong in urban areas with significant vehicle traffic.

The GCC natural gas market is projected to grow substantially from 2023 to 2033. According to the research report published by Future Market Insights, the global market is anticipated to cross a valuation of US$ 55,248.7 million in 2023. It is predicted to attain a valuation of US$ 85,799.6 million by 2033. The market is expected to thrive at a CAGR of 4.5% from 2023 to 2033.

GCC Natural Gas Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)

Explore the Natural Gas Market trends! Covers key players, growth rate 7.3% CAGR, market size $1670.84 Billion, and forecasts to 2034. Get insights now!

The average monthly price for natural gas in the United States amounted to 3.02 nominal U.S. dollars per million British thermal units (Btu) in December 2024. By contrast, natural gas prices in Europe were about four times higher than those in the U.S. Prices for Europe tend to be notably higher than those in the U.S. as the latter benefits from being a major hydrocarbon producer. Europe's import reliance European prices for natural gas rose most notable throughout the second half of 2021 and much of 2022, peaking at over 70 U.S. dollars per million Btu in August 2022. The sharp rise was due to supply chain issues and economic strain following the COVID-19 pandemic, which was further exacerbated by Russia’s invasion of Ukraine in early 2022. As a result of the war, many countries began looking for alternative sources, and Russian pipeline gas imports to the European Union declined as a result. Meanwhile, LNG was a great beneficiary, with LNG demand in Europe rising by more than 60 percent between 2021 and 2023. How domestic natural gas production shapes prices As intimated, the United States’ position among the leaders of worldwide natural gas production is one of the main reasons for why prices for this commodity are so low across the country. In 2023, the U.S. produced more than one trillion cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

Africa Natural Gas Market size was valued at USD 59.39 Billion in 2024 and is projected to reach USD 103.58 Billion by 2032, growing at a CAGR of 4.5 % from 2026 to 2032.

Africa Natural Gas Market Dynamics
The key market dynamics that are shaping the Africa natural gas market include:

Key Market Drivers:
Industrialization and Economic Growth: The demand for natural gas is rising as a result of Africa’s industrialization and expanding economy. The continent’s GDP is predicted to grow by 4.1% in 2023, which would increase demand for energy, especially in the manufacturing and power generation sectors. In many African nations, natural gas is essential to the growth of their industries.

Forecast: Petroleum and Natural Gas Extraction Support Activities Labour Cost Per Employee FTE in France 2023 - 2027 Discover more data with ReportLinker!

Global Natural Gas Storage Market reached US$ 308.87 billion in 2023 and is expected to reach US$ 401.25 billion by 2031

According to the Cognitive Market Research Report, the Fingerprint Sensors Market size in 2023 was XX Million and is projected to have a compounded annual growth rate of XX% from 2024 to 2031. Increase in Light-Duty Vehicles Worldwide and growing cost of fossil fuels are one of the main reasons behind the CNG market's expansion. Many growing drivers have caused the Asia Pacific region to become a dominating participant in the CNG industry in recent years. These include backing from the government, financial savings, environmental considerations, the need for transportation expansion, and the availability of natural gas.

Market Dynamics of Compressed Natural Gas CNG Market

Key Drivers

Increase in Light-Duty Vehicles Worldwide

Light-duty vehicles (LDVs) are defined as vehicles weighing less than 10,000 pounds (about 4500 kg), and this group includes both passenger cars and light commercial vehicles (such as delivery vans and pick-ups). The other benefit of these vehicles is that people are purchasing these vehicles due to factors like Growing urbanization, higher disposable income, and the growth of the automobile sector. These consumers of light-duty vehicles are embedding the CNG in their vehicles because CNG burns almost particle-free and emits significantly less CO2 than liquid fuels. Conventional CNG is now supplemented by CNG derived from regenerative sources. As a result, the gasoline is even more eco-friendly. It is also cost effective Because of the low cost of gasoline, automobiles equipped with CNG powertrain systems are more economical in many nations. The wide range of gas engines and vehicle types that are compatible with CNG technology includes anything from little automobiles to large commercial trucks. Significant system knowledge, consultancy services, and tried-and-true standard parts are further important components in terms of light-duty vehicles. For instance, Tata’s Ace Gold CNG Plus A 2-cylinder 694CC engine with a maximum output of 19.4 kW (26 HP) and a maximum torque of 51 nM powers BS6 Phase 2. It has a segment-best load body deck with a load body that is 2520 mm (8.2 feet) long and a segment-best leaf spring suspension that is highly loadable. This vehicle has an 18 kg CNG fuel tank that provides a 400 km trip range, which is at least 70% longer than that of the closest competitor mini truck. The BS6 Phase 2 model includes an improved cockpit with a larger headlight for safety, revised steering for less steering effort, and a flat bench for the driver to relax on. Because of its great load capacity, minimal maintenance requirements, and high resale value, the Ace Gold CNG Plus is the best car for consumers searching for a CNG choice. (Source: https://smalltrucks.tatamotors.com/product/ace/tata-ace-gold-cng-plus) Therefore, there is a huge consumer base for light-duty vehicles that are going for CNG rather than conventional fossil fuel because of less CO2 emission and being cost-effective.

The growing cost of fossil fuels is one of the main reasons behind the CNG market's expansion.

An important aspect propelling the CNG market's expansion is the escalating cost of fossil fuels. Due to the rising costs of conventional fossil fuels like gasoline and diesel, more businesses and consumers are searching for more affordable and environmentally friendly alternatives. Given that CNG is more affordable and steadier in price than other fossil fuels, especially gasoline and diesel, it is a good substitute. Several variables, such as the foreign currency rate, the price of oil globally, the capacity of local refineries, and governmental regulations, have an impact on the price of gasoline at the pump. Regrettably, these variations frequently cause transportation expenses to rise, which has an impact on the pricing of products and services. The economies are susceptible to global market swings, geopolitical unrest, and supply chain interruptions due to their dependence on imports for refined petroleum products. Burning fossil fuels also releases toxic greenhouse gases into the atmosphere, which exacerbates air pollution and accelerates climate change. The importance of switching to greener and more sustainable energy sources is highlighted by these difficulties. Hence, to counterattack these challenges, the usage of Compressed Natural Gas is a cost-effective and environment-friendly means for transportation purposes. ...

As per Cognitive Market Research's latest published report, the Global Oil Exploration and Production market size is $3,588.98 Million in 2024 and it is forecasted to reach $5,116.57 Billion by 2031. Oil Exploration and Production Industry's Compound Annual Growth Rate will be 5.20% from 2024 to 2031. Market Dynamics of the Oil Exploration and Production Market

Market Driver for the Oil Exploration and Production Market

The increasing investment in oil sector by several government bodies worldwide elevates the market growth 

Many countries view a stable and secure energy supply as crucial for their economic development and national security. Investing in the oil sector helps ensure a reliable source of energy. Oil exploration and production contribute significantly to the economic growth of a country. Governments often invest in the oil sector to capitalize on the potential for high returns, which can be used to fund public services, infrastructure projects, and other essential programs. Despite efforts to transition to renewable energy sources, the global demand for oil remains high. Governments recognize the need to meet this demand and ensure a stable energy supply to support industrial processes, transportation, and other key sectors. The oil and gas industry encompasses activities linked to exploration, including the search for hydrocarbons, identification of high-potential areas for oil and gas extraction, test drilling, the construction of wells, and initial extraction. According to the Center on Global Energy Policy, data 2023, the 2021–22 period of high oil and gas prices did not lead to a significant increase in capital spending by private companies despite record profits. One exception has been upstream exploration and production (E&P) companies, whose capital spending in 2022 was the highest since 2014.   According to the International Labor Organization (ILO), data 2022, the oil and gas industry makes a significant contribution to the global economy and to its growth and development worldwide. The oil industry alone accounts for almost 3 per cent of global domestic product. The trade in crude oil reached US$640 billion in 2020, making it one of the world’s most traded commodities. Additionally, the industry is highly capital-intensive. Globally investments in oil and gas supply reached more than US$511 billion in 2020. According to the oil and gas industry outlook, data 2023, rapid recovery in demand, and geopolitical developments have driven oil prices to 2014 highs and upstream cash flows to record levels. In 2022, the global upstream industry is projected to generate its highest-ever free cash flows of $1.4 trillion at an assumed average Brent oil price of $106/bbl. Until now, the industry has practiced capital discipline and focused on cash flow generation and pay-out—2022 year-to-date average O&G production is up by 4.5% over the same period last year, while 2022 free cash flows per barrel of production is projected to be higher by nearly 70% over 2021. In addition, high commodity prices and growing concerns over energy security are creating urgency for many to diversify supply and accelerate the energy transition. As a result, clean energy investment by Oil &Gas companies has risen by an average of 12% each year since 2020 and is expected to account for an estimated 5% of total Oil & Gas capex spending in 2022, up from less than 2% in 2020.Therefore, investments made over recent decades enabled the United States to become a world leader in oil and natural gas production. Thus, owing to increased oil production, the demand for oil exploration and production has surged during the past few years.

The rising demand for oil across both commercial and residential sector is expected to drive the market growth 

Oil remains a primary source of energy for transportation, including cars, trucks, ships, and airplanes. The growing global population, urbanization, and increased industrial activity contribute to a rise in the number of vehicles and the overall demand for transportation fuels derived from oil, such as gasoline and diesel. Many industrial processes rely on oil and its by-products as energy sources and raw materials. Industries such as manufacturing, petrochemicals, and construction utilize oil-based products for various applications, including heating, power generation, and the production of pl...

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Oil And Gas Transportation Market Size 2025-2029

The oil and gas transportation market size is forecast to increase by USD 39.8 billion at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth due to the expansion of oil terminals and substantial investments in infrastructure development. These initiatives aim to address the increasing demand for transporting crude oil and natural gas efficiently and safely. However, the transportation of these resources presents technical challenges. Crude oil's viscosity and natural gas's compressibility require specialized methods and technologies to ensure safe and efficient transport. Additionally, the market faces regulatory pressures and environmental concerns, necessitating continuous innovation and adaptation to meet evolving industry standards. Overall, the market's growth is driven by the need for reliable and cost-effective transportation solutions, while addressing the unique challenges of transporting oil and gas.

What will be the Size of the Oil And Gas Transportation Market During the Forecast Period?

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The market is witnessing significant advancements with the integration of automated pipelines and high-tech tankers. Automation and control systems enable efficient operation, reducing human error and enhancing safety. However, the environmental concerns surrounding carbon emissions remain a pressing issue. Cross-border pipelines for natural gas and liquefied natural gas (LNG) are essential components of global energy transportation infrastructure. The shift towards renewable energy sources is transforming the energy landscape. Onshore pipeline technology is evolving to accommodate the integration of renewable energy into the grid. Urbanization and industrialization have led to increased energy demand, necessitating strong transportation infrastructure. Maintenance and support are crucial aspects of pipeline operations.



Automation and control systems facilitate remote operation, ensuring optimal performance and reducing downtime. Security solutions and integrity tracking systems provide peace of mind, safeguarding against potential threats and ensuring the safe transportation of resources. Short-distance transportation, such as natural gas vehicles, is gaining popularity as an alternative to traditional oil-based transportation. Hydrogen pipelines represent a promising development in the energy sector, offering a potential solution for long-distance transportation with minimal carbon emissions. Investment in energy infrastructure projects is essential to meet the growing demand for energy transportation. The market dynamics are complex, influenced by factors such as environmental regulations, geopolitical tensions, and technological advancements.

How is this Oil And Gas Transportation Industry segmented and which is the largest segment?

The oil and gas transportation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Transportation

  Pipelines
  Railroads
  Tankers and trucks


Type

  Gas
  Oil


Geography

  APAC

    China
    India


  North America

    Canada
    US


  Middle East and Africa



  Europe

    UK
    Norway


  South America

    Brazil

By Mode Of Transportation Insights

The pipelines segment is estimated to witness significant growth during the forecast period.

In the global oil and gas transportation market, pipelines stand out as a fundamental mode of transporting vital hydrocarbon resources across vast distances. These networks of pipelines play a pivotal role in moving crude oil, natural gas, and refined petroleum products efficiently and securely. Pipelines offer several advantages over other transportation methods. They provide a cost-effective means of transporting large volumes of oil and gas over long distances, minimizing the transportation costs per unit. Moreover, pipelines offer a more eco-friendly approach to the transportation of hydrocarbons by reducing carbon emissions when compared to modes like trucks or ships.

Further, pipelines are widely used transportation methods to move petroleum and refined petroleum products. For instance, in the US, 70% of crude oil and petroleum products were shipped by pipeline. In Canada, 90% of natural gas and petroleum products were transported by pipelines. This includes both long-distance inter- and intra-state transmission systems. For delivery into common carrier transmission systems, it also includes local or regional gathering systems, which aggregate production for delivery.

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The pipelines segment was valued at USD

North America Natural Gas Market was valued at USD 172.39 Million in 2024 and is projected to reach USD 251.61 Million by 2032, growing at a CAGR of 4.8% from 2025 to 2032.

Key Market Drivers:

Increasing Demand for Cleaner Energy: The natural gas market is being driven by the growing need for cleaner energy sources. According to the United States Energy Information Administration (EIA), natural gas will account for 34% of U.S. electricity generation in 2023 as a lower-emission alternative to coal. This transition contributes to the sustained need for natural gas.

Expansion of LNG Exports: North American liquefied natural gas (LNG) exports are quickly expanding, driven by worldwide demand for cleaner fuels. According to the EIA, the United States will export roughly 12.5 Billion cubic feet per day (Bcf/d) of LNG in 2023, boosting market growth and enhancing North America’s position as a global energy exporter.

Compressed Natural Gas (CNG) Market is expected to grow at a high CAGR during the forecast period 2023-2030 | DataM Intelligence

The Natural Gas Liquid Market is segmented based on product into Ethane, Propane, Isobutene, and Natural Gasoline. Ethane is the most dominant product due to its high demand as a petrochemical feedstock for producing ethylene. Propane is primarily used as a fuel for heating, cooking, and transportation. Isobutene is mainly used in the production of synthetic rubber. Natural gasoline is used as a blending component in motor fuels. Recent developments include: In April 2019,Hess Midstream Partners LP announced plans to increase natural gas processing capacity at the Toga gas facility by 150 million cubic feet per day, bringing total processing capacity north of the Missouri River to 400MMcf/d., In March 2023,Saudi Aramco announced record profits of $161 billion as gasoline prices skyrocketed following the Corona-virus pandemic. The figures outperformed ExxonMobil and Shell, which announced profits of $55.7 billion and $39.9 billion, respectively., In July 2019, Occidental Petroleum purchased Anadarko Petroleum, bringing with it a vast legacy of environmental violations, including the largest environmental contamination settlement in American history, involvement in the Deepwater Horizon BP disaster, and Clean Water Act fines.. Notable trends are: Growing government backing for NGL usage drives market growth..

Gas Engine Market size was valued at USD 4.78 Billion in 2023 and is projected to reach USD 7.35 Billion by 2031, growing at a CAGR of 5.53% from 2024 to 2031.

Key Market Drivers:
Rising Demand for Clean Energy: The desire for better energy options is driving the use of gas engines as a lower-emission alternative to coal and oil. In July 2023, the United States Department of Energy announced a $30 million commitment to promote natural gas technologies, with the goal of increasing efficiency and lowering emissions in power generation.
Technological Advancements: Innovations in gas engine technology, such as increased efficiency and flexibility, are driving market growth. Cummins Inc. will launch a new line of high-efficiency gas engines designed for industrial applications in August 2023, demonstrating its commitment to improving gas engine technology.