In 2026, liquified natural gas (LNG) was forecast to cost approximately 11.5 U.S. dollars per million British thermal units in Japan. The country imported the majority of its natural gas supply from overseas. Natural gas production in JapanSince Japan has limited natural resources, it heavily depends on imports for its primary energy supply. Only a small amount of the total supply of natural gas energy is produced domestically in areas such as Hokkaido, Chiba, or Niigata Prefecture. The natural gas produced in the around 60 oil and natural gas mines operating in Japan is mainly wet and dry natural gas. Minami-Kanto natural gas fields dissolved in water, which lies across Chiba Prefecture and surrounding prefectures, yields close to 20 percent of the total production of natural gas in the country. The saltwater in the field also includes a great amount of iodine. Japan is hence one of the leading countries regarding iodine production. LNG importsApart from the two percent of in-house natural gas production, the rest of the natural gas supply in Japan originates from liquefied natural gas (LNG) imports from countries like Australia, the state of Qatar, Malaysia, and Indonesia. Japan imported over 71 megatons of LNG in recent years, making the country the world’s largest importer of LNG. Natural gas and LNG accounted for over 21 percent of the total primary energy supply in Japan, indicating that natural gas and LNG are some of the most essential resources the country requires.

The average monthly price for natural gas in the United States amounted to *** nominal U.S. dollars per million British thermal units (Btu) in October 2025. By contrast, natural gas prices in Europe were about three times higher than those in the U.S. Prices in 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 ** 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 ** percent between 2021 and 2024. 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 2024, the U.S. produced more than ************ cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

United States' electricity producers paid about 2.75 U.S. dollars per million British thermal unit for natural gas in 2024. Meanwhile, coal power plant operators paid an average of 2.48 U.S. dollars. In the last decade, the price of natural gas used for electricity generation has seen a net decrease, followed by a considerable rise in 2022. Coal, on the other hand, has consistently been among the cheapest fuel types used in the power sector. Natural gas prices and the influence of oil demand As it is often produced alongside oil, prices for natural gas are shaped by overall market developments of the oil and gas industry. When an overproduction of oil led to the oil glut between 2015 and 2016, natural gas prices fell notably. The same circumstance could be observed in 2020 when a fall in oil demand brought many benchmarks such as WTI and Brent to historic lows and also resulted in the Henry Hub price falling to a 21-year low. Apart from petroleum, which is an expensive and inefficient means of power production, fossil fuel costs for electricity generation have declined since 2022. Shift away from conventional energy sources Although renewable technologies were once thought to be very expensive, greater investments have quickly rendered their levelized cost of energy generation on par with fossil fuels, especially when deployed on a utility-scale. The aging coal fleet is a prime example of the increasing necessity to switch to carbon neutral technologies. Older coal plants are dealing with increasing maintenance costs as well as environmental regulations forcing the installation of pollution controls.

The cost of fossil fuels in the United States electric power industry varies depending on the source that is used. In general, fossil fuels cost about 3.12 U.S. dollars per million British thermal units (Btu) in 2023, ranging from 2.36 U.S. dollars per million Btu for coal to 16.53 U.S. dollars per million Btu for petroleum. Coal and petroleum costs Of the fossil fuels used for electric power generation, petroleum costs have been the most volatile, while coal costs have remained relatively stable in comparison. Average costs of petroleum, which includes various kinds of oil, fluctuated significantly over the period of consideration and reached a peak in 2022 during the energy crisis that hit the global fossil fuels market. Natural gas price Similar to coal, natural gas prices can vary based on the region. Being a large producer of domestic natural gas, the U.S. has notably lower prices compared to Europe and Japan. Due to greater natural gas production through hydraulic fracturing, prices in the U.S. have experienced an overall decline over the last decade or so, falling to 2.4 U.S. dollars per million Btu in 2020. However, natural gas markets around the world experienced price shocks in 2021 and 2022 as a result of the Russia-Ukraine war. In the United States, average natural gas costs for use in the electric power sector more than tripled in 2022.

In 2024, the price of natural gas in Europe reached 11 constant U.S. dollars per million British thermal units, compared with 2.2 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 over 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 36 trillion cubic feet in 2050, up from 1.77 trillion cubic feet in 2000.

Japan and China have some of the highest spot prices for liquefied natural gas. In January 2024, customers in Japan and China paid approximately 10.05 U.S. dollars per million British thermal unit of LNG delivered. Destination markets in Europe and South America experienced slightly lower shipping costs. In the last few years, the global trade volume of LNG has increased notably, exceeding 500 billion cubic meters shipped.

LNG demand growth and largest destination markets

Increased gas demand and improved liquefaction technology has prompted growth in the gas market and the entry of new players. LNG prices were initially strongly influenced by crude oil, however, as the market grew it developed independent benchmarks. As one of the largest LNG importing countries, the price for LNG in Japan has become synonymous with the global benchmark.

Argentina Average Sales Price: Natural Gas data was reported at 111,844.049 ARS/Cub Mm in Feb 2025. This records a decrease from the previous number of 112,130.924 ARS/Cub Mm for Jan 2025. Argentina Average Sales Price: Natural Gas data is updated monthly, averaging 221.823 ARS/Cub Mm from Jan 1993 (Median) to Feb 2025, with 386 observations. The data reached an all-time high of 145,829.308 ARS/Cub Mm in Sep 2024 and a record low of 35.244 ARS/Cub Mm in Dec 1993. Argentina Average Sales Price: Natural Gas data remains active status in CEIC and is reported by Energy Secretariat. The data is categorized under Global Database’s Argentina – Table AR.RB005: Energy Price: by Product. Data prior 2001 refers to Average Sales Price: Natural Gas in USD/Cub Mm [COVID-19-IMPACT]

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Fuel Flexible Boiler Market Size 2024-2028

The fuel flexible boiler market size is forecast to increase by USD 1.26 billion, at a CAGR of 4.5% between 2023 and 2028. There is a rising demand for natural gas thermal power generation driven by global population growth and urbanization trends. As cities expand, there is an increasing need for reliable energy sources like natural gas to meet electricity demands efficiently. Regulatory frameworks are increasingly focused on reducing carbon footprints, prompting industries and utilities to adopt cleaner energy technologies. Natural gas, known for its lower carbon emissions compared to other fossil fuels, plays a pivotal role in these efforts. Governments worldwide are implementing stringent regulations to encourage the transition towards cleaner energy sources, promoting sustainable development and environmental stewardship. This shift underscores a concerted global effort to balance economic growth with environmental responsibility, ensuring energy security while mitigating the impact of greenhouse gas emissions on climate change.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

In the realm of energy production, black coal remains a significant fuel feed system for thermal power generation, particularly in industries such as textile manufacturing. The evolution towards low-emission boilers underscores efforts to achieve decent combustion while minimizing environmental impact. These boilers are designed to handle various solid, liquid, and gaseous fuels, including biomass, promoting flexible fuel energy options to meet diverse energy needs. The evaluation of such systems involves ensuring coherent allocation of resources and adherence to stringent operational procedures to optimize efficiency. Ultimately, thermal power plants utilize turbines to convert heat energy into electricity, supporting industrial operations and urban infrastructure. As the global demand for sustainable energy solutions grows, innovations in coal-fired technologies continue to drive advancements in power generation, balancing economic feasibility with environmental stewardship in the pursuit of cleaner energy futures. In textile industries, the adoption of lowemission boiler is crucial for reducing environmental impact while meeting energy demands efficiently. These boilers adhere to stringent operational procedure to optimize combustion and minimize emissions. The steam generated by these boilers powers turbine, which convert thermal energy into mechanical energy to drive machinery in textile manufacturing processes.

Key Market Driver

One of the key factors driving the global market growth is the increasing need for natural gas thermal power generation. To produce electricity, natural gas is used as fuel to run gas turbines. With the growing crisis of natural resource depletion, natural gas is an affordable option that generates electricity. Furthermore, natural gas plants are quick to build overbuilding nuclear or coal power generation plants.

Furthermore, the air quality tends to improve as smog emission reduces when switching to natural gas plants from coal plants. These factors will increase the usage of fuel flexible boilers in the natural gas thermal power plant. Between 2020 and 2050, in the AEO2021 reference model, the demand for geothermal power generation will significantly increase from coal industries. Thus, such contributing factors will drive the global market during the forecast period.

Significant Market Trend

Shifting trends toward low-emission natural gas is one of the key market trends that is expected to impact the industry positively in the forecast period. According to the US Environmental Protection Agency, methane emissions, from natural gas and petroleum systems, as well as abandoned oil and natural gas wells, accounted for around 29% of total US methane emissions and 30% of the total greenhouse gas emissions in 2019. Natural gas emits about 117 pounds of carbon dioxide per million British thermal units (MMBtu), compared to more than 200 pounds per MMBtu from coal and more than 160 pounds per MMBtu from distillate fuel oil. Thus, the governments are now taking positive steps in the right direction. More than 110 countries, including the European Union, Japan, and South Korea, have committed to carbon neutrality by 2050; China has stated that it will do it before 2060. Such factors will further support the market in the coming years.

Major Market Challenge

One of the key challenges to global market growth is resistance to slagging, fouling, and corrosion. Slagging accidents are projected to cost the worldwide utility business several billion dollars per year in lost power generation and equipment repair. Corrosion in boiler furnaces mainly occurs due to two reasons, mostly when dissolved oxygen