InvestorQ : What are the factors that drive the demand and supply of natural gas?
Tanu Shukla made post

What are the factors that drive the demand and supply of natural gas?

Answer
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krithika Saxena answered.
2 years ago


It needs to be remembered that India is a very small players in the natural gas market, both on the supply side and the demand side. The two major suppliers of natural gas in the world are the US and Russia. Both have an equal share of gas and jointly account for nearly 40% of the total gas produced in the world. Subsequently, Iran, Qatar, Canada, China, Norway and Netherlands between them account for another 25%. India is ranked at number 25 and its gas production is roughly at par with smaller nations like Argentina and Pakistan.

Demand for gas comes from housing, industrial applications, factories, fertilizer plants and power plants. In fact, the share of natural gas in the hydrocarbons basket is expected to grow from 26% currently to nearly 32% in the next decade. The big challenge in case of natural gas is that the price of natural gas in each country is based on unique economy specific policies. Also due to a mix of macroeconomic and geopolitical factors, the price of natural gas tends to be slightly volatile, although it broadly moves in sync with the crude oil prices.