Natural Gas Has Achieved Dominance and Is No Longer a Bridge Fuel

In the evolving global energy landscape, natural gas has undergone a profound transformation. Once positioned as a mere “bridge fuel” to facilitate the shift from coal to renewables, it is now recognized as a cornerstone of energy supply that will endure for decades. This narrative shift is driven by surging demand, technological advancements, and geopolitical realities, as evidenced by record production levels and expanding infrastructure.

Experts argue that natural gas’s role has evolved from transitional to indispensable, supporting industrialization in emerging markets and balancing intermittent renewables in developed ones.

With global consumption hitting an all-time high of 398 billion cubic feet per day (Bcf/d) in 2024, and projections for continued growth, natural gas is no longer a temporary fix but a dominant force in the energy mix.

Surging Production: Top Countries, Companies, and Basins Lead the ChargeGlobal natural gas production reached a record 398 Bcf/d in 2024, with significant increases driven by key players across continents.

The United States remains the undisputed leader, producing nearly 100 Bcf/d in 2024—accounting for 25% of global output—and showing a 5.4% year-over-year increase in dry gas production as of April 2025.

Russia follows with 60.8 Bcf/d, rebounding 7% in 2024 due to domestic demand, while Iran produces 25 Bcf/d, China 23 Bcf/d (doubled over the past decade), and Qatar 17 Bcf/d, with plans to expand to 142 million tonnes per annum (mtpa) by enhancing the North Field.

Other notable producers include Canada (16 Bcf/d), Australia (14 Bcf/d), and emerging contributors like Uzbekistan and Nigeria.

Breaking this down by companies and basins reveals concentrated growth. In the US, major operators like ExxonMobil, Chevron, and EQT dominate, with ExxonMobil leading global natural gas efforts through integrated operations.

Key basins include the Permian (Texas/New Mexico), where production surged due to associated gas from oil drilling; the Marcellus (Pennsylvania/West Virginia), focused on dry gas; and the Haynesville (Louisiana/Texas), seeing renewed investment.

Russia’s Gazprom controls vast reserves in the Yamal Peninsula and Siberian basins, while Iran’s National Iranian Oil Company operates in the South Pars field.

In China, PetroChina drives output from the Tarim and Sichuan basins, and QatarEnergy spearheads expansions in the North Field.

Globally, majors like Shell, TotalEnergies, and ConocoPhillips are pivotal, with market caps reflecting their scale—PetroChina at $217 billion and Shell at $210 billion as of 2025.

This table highlights how production growth is uneven, with OECD countries like the US and Australia contributing over half of the decade’s increases, while non-OECD nations like China fuel demand-led expansions.

LNG Exports: Fueling Global Connectivity and GrowthLiquefied natural gas (LNG) exports have tripled since 2010, reaching 411.24 million tonnes (MT) in 2024—a 2.4% increase from 2023—and connecting 22 exporters to 48 importers.

The US leads with over 11 Bcf/d (rising from 11.9 Bcf/d in 2024), followed by Qatar and Australia at 10.3 Bcf/d each.

Nearly 295 billion cubic meters per year (bcm/yr) of new export capacity is slated for 2025-2030, diversifying suppliers and enhancing market liquidity.

This boom underscores natural gas’s shift to a long-term staple, as LNG enables flexible global trade amid geopolitical shifts.

Rise of Dual-Fuel Ships: Maritime Sector Embraces LNG

The maritime industry is pivoting toward LNG, with dual-fuel ships (capable of running on LNG or traditional fuels) seeing explosive growth. In 2025, 292 alternative-fuel vessels are set for delivery, up from 198 in 2024, led by containerships and vehicle carriers.

LNG-fueled containerships number 142 in service, with over 300 on order, including orders from Yang Ming for seven 15,000 TEU vessels.

The LNG bunkering market is projected to grow from $2.9 billion in 2025 to $46.5 billion by 2034, at a 35.9% CAGR, driven by regulations and Asia’s demand.

By year-end 2024, 1,381 dual-fuel vessels were in service, with 849 more ordered, highlighting LNG’s role in decarbonizing shipping.

Expansion of LPG and Other Natural Gas ProductsLiquefied petroleum gas (LPG) and other natural gas liquids (NGLs) have mirrored this dominance. US LPG exports hit record highs in 2024, totaling 20.2 million MT year-to-date, fueled by booming gas production.

Global LPG exports are expected to dip slightly to 40.5 MT in 2024 but rebound in 2025, driven by Northeast Asia and US supply growth.

Canada’s NGL exports grew strongly in 2024, tied to Alberta and British Columbia production increases.

US NGL production rose in 2024 due to associated gas, with propane demand forecasted to increase 5.7% into 2025, despite trade risks.

These byproducts, used in petrochemicals and heating, reinforce natural gas’s multifaceted economic impact.

Natural Gas Plants and AI Data Centers: Powering the US Future

In the US, natural gas is pivotal for grid reliability amid rising demand. Gas generation increased 3.3% in 2024, comprising 43% of the electricity mix, as clean growth met surging needs rather than displacing coal.

The Department of Energy’s July 2025 report warns of grid risks by 2030, with AI data centers adding 35–108 GW of load and 104 GW of retirements (mostly coal) outpacing additions.

Natural gas, as a firm baseload source, is essential, with new plants emphasized to avert outages.

AI’s energy hunger—projected to double data center demand to 945 TWh globally by 2030—has spurred a “gold rush” for gas, with companies like Chevron tapping reserves to power centers.

Natural gas’s dominance is unchallenged, with production, exports, and applications expanding amid a narrative that views it as a long-term energy source rather than a bridge. Much like the Trump Administration’s team, they are looking at the most economical way forward to achieve energy dominance globally. The shipyards have picked up on that, and it is clear for their path forward. I highly respect Anas Alhajji on X as an energy leader, and his opinions matter. He has pointed out that the increased demand for energy cannot be met in the short term by nuclear, and he has been spot on the Energy Transition all along.