Why is Natural Gas Crucial

As the world strives to balance the urgent need to achieve the United Nations Sustainable Development Goals (UNSDGs) with rising energy demand, addressing this dual challenge is especially critical for low- and middle-income countries. According to the 9th edition of the GECF Global Gas Outlook (GGO), global primary energy demand is expected to rise by 20% by 2050, with over 80% of this increase concentrated in Africa and developing Asia. In these regions, aspirations for higher living standards and economic growth are driving energy consumption, which isessential for fulfilling basic human needs and meeting the UNSDGs. As a cleaner energy source, natural gasoffers a practical pathway to modern energy solutions for these economies, supporting an orderly and sustainable transition. Adopting natural gas as a cornerstone of modern energy aligns with SDG 7, which emphasises affordable, reliable, and sustainable energy as a foundation for development. The World Health Organization (WHO) has highlighted that "Energy is also critical for achieving almost all other global goals." Affordable, abundant, and reliable energy is crucial for eradicating poverty (SDG 1), a pressing issue in Africa where almost half billion people lived below the poverty line. The figure below provides a simplified view of how affordable energy supports several key SDGs, showing how access to energy lays the groundwork for broader socio-economic progress. Energy poverty, exacerbated by rising energy and commodity prices, has become a global challenge that underscores the need for reliable and affordable energy options.

The impact of clean and accessible energy extends to health improvements (SDG 3), as WHO considers health to be "inextricably linked" with energy. This link extends to quality education (SDG 4), where energy access is essential for comprehensive learning environments, from advanced laboratories to basic classroom lighting. Affordable energy also promotes industry, innovation, and infrastructure (SDG 9), enhances access to clean water (SDG 6), supports job creation and economic growth (SDG 8), and plays a role in combating climate change (SDG 13). These connections underscore the transformative role of affordable energy in spurring economic growth—a need that is particularly urgent for Africa's development and prosperity.

Natural gas serves as key fuel in the global effort to mitigate climate change due to its cleaner-burning properties, flexibility in power generation, and compatibility with emerging low-carbon technologies. As the cleanest hydrocarbon fuel, natural gas emits roughly 50-60% less carbon dioxide (CO₂) per unit of energy when compared to coal. This makes it a practical substitute for coal in electricity generation, providing immediate reductions in greenhouse gas (GHG) emissions while ensuring reliable energy supply. By switching from coal to natural gas, countries can make substantial progress toward climate goals, reducing both CO₂and air pollutants such as sulfur dioxide (SO₂) and nitrogen oxides (NOx), which contribute to smog and respiratory diseases.

One of the key benefits of natural gas is its ability to provide flexible and reliable power generation, making it an essential partner for renewable energy sources like wind and solar. Because renewables are intermittent, natural gas-fired power plants can quickly ramp up or down to balance supply and demand on the grid, ensuring energy stability and minimising the need for costly energy storage solutions. This flexibility supports a resilient energy system and facilitates the transition to a low-carbon energy system. By providing a stable backup power source, natural gas helps maintain grid reliability while reducing the reliance on more carbon-intensive power plants.

Natural gas is also integral to decarbonising hard-to-abate sectors such as heavy industry and , transportation. For example, in industrial applications that require high-temperature heat, natural gas offers a lower-emission alternative to coal and oil, reducing overall carbon emissions. Additionally, in the transportation sector, natural gas vehicles (NGVs) emit significantly fewer GHGs compared to diesel-powered vehicles, making them a cleaner alternative for public transportation and heavy-duty freight.

The deployment of Carbon Capture Utilisation Storage (CCUS) technologies in conjunction with natural gas operations further enhances its role in climate change mitigation. CCUS allows for the capture of CO₂emissions from natural gas-fired power plants and industrial processes before they are released into the atmosphere. The captured CO₂can be stored underground or used in various industrial applications, creating a pathway for "blue hydrogen" production and significantly reducing the carbon footprint of natural gas. CCUS technologies are expected to play a critical role in achieving net-zero emissions targets and decarbonising the energy sector.

GECF member countries have been actively engaged in efforts to reduce methane emissions and minimise gas flaring, with numerous initiatives underscoring their commitment to climate action and environmental sustainability. Measures have been implemented to monitor and mitigate methane emissions, including the use of advanced leak detection systems and the reduction of venting and flaring through efficient gas management strategies. Efforts also include the capture and utilisation of associated gas through investments in infrastructure that transforms flare gas into valuable energy resources for both domestic consumption and export. Policies have been introduced to incentivise flare gas recovery for power generation and industrial applications. Gas re-injection projects have been developed to support enhanced oil recovery and contribute to broader environmental goals. Modernisation of gas infrastructure and the deployment of advanced capture technologies at production sites further reflect the collective commitment to reducing the environmental footprint of natural gas operations

Coal-to-gas switching involves substituting coal with natural gas in power generation and industrial processes, and it has emerged as a key approach to reducing greenhouse gas emissions and air pollution. By lowering the release of pollutants, this transition contributes to cleaner air, delivers public health benefits, and supports progress towards climate goals by reducing their environmental footprint.

Coal is among the most carbon-intensive fuels, with a high level of carbon dioxide (CO₂) emissions per unit of energy produced. Natural gas, on the other hand, is a much cleaner-burning fuel; it emits roughly 50% less CO₂ than coal when used for power generation and produces lower levels of pollutants like sulfur dioxide (SO₂), nitrogen oxides (NOx), and particulate matter (PM).

The role of coal-to-gas switching in emission reduction has been particularly evident in countries like the United States and the United Kingdom, where increased natural gas production, policy initiatives and market competitiveness have enabled a significant shift from coal. For instance, in the United States, the increased use of natural gas for electricity generation contributed to a reduction in energy-related CO₂ emissions of more than 30% in the last two decades. In the United Kingdom, the last coal power plant was retired in 2024, largely due to a transition to natural gas and renewable energy sources.

This switch has had measurable environmental impacts, contributing substantially to emission reduction commitments under the Paris Agreement and aiding in the improvement of air quality. Natural gas-fired plants can provide reliable, flexible power, complementing intermittent renewable sources like wind and solar. This flexibility makes natural gas a valuable partner in the energy transition, especially in regions where coal is currently dominant and immediate transition to 100% renewables is not feasible due to technical, economic, or infrastructure constraints. Consequently, to maximise the environmental benefits of coal-to-gas switching, it is essential to invest in advanced technologies for methane capture, improve efficiency in gas infrastructure, and ultimately pair natural gas use with carbon capture and storage (CCS) solutions. This approach remains a powerful means of achieving rapid emission reductions and improving air quality, underscoring its importance in global climate strategies.

Investment in the gas industry, along the entire gas value chain, is of critical importance for global energy security and sustainable development. Moreover, sufficient investment will contribute to gas market stability. Upstream gas investment is essential as it ensures the exploration, development, and production of natural gas reserves, securing a reliable supply to meet both domestic and global demand. These investments drive technological advancements and infrastructure development, improving efficiency and reducing production costs. Midstream and downstream gas investment are also vital, as they enable the processing, distribution, and marketing of natural gas, ensuring it reaches consumers efficiently and reliably. Investment in these segments - such as in LNG and pipeline infrastructure, and petrochemical plants - can expand market access, improve clean energy access, and mitigate energy poverty. Investing in natural gas is essential for achieving a just energy transition that balances the need for affordable, reliable energy with environmental sustainability and social equity. Natural gas, with its lower carbon footprint compared to coal and oil, serves as a critical fuel that supports energy transitions while providing reliable baseload power and reducing overall emissions. Natural gas investment is crucial for reducing energy poverty and supporting economic growth in low- and middle-income countries. Around 770 million people globally still lack access to electricity, and over 2.4 billion rely on traditional biomass for cooking. By expanding natural gas infrastructure, countries can replace polluting fuels, improve air quality, and provide affordable energy to underserved populations. Investments in natural gas can help ensure that the benefits of the energy transition reach all communities, creating new economic opportunities, enhancing energy security, and reducing the gap between developed and developing regions.

Natural gas and renewables are natural partners in the transition to a low-carbon energy future. While renewable energy sources such as solar and wind are essential for reaching environmental goals, their inherent intermittency requires a reliable complement to ensure a stable and continuous energy supply. Natural gas plays a critical role not only as a backup but also as an enabler, supporting grid stability, balancing energy systems, and facilitating deeper integration of renewables.

With its lower carbon footprint compared to other hydrocarbons, natural gas strengthens the shift toward cleaner energy while helping countries achieve emissions reduction targets. By partnering with renewables, natural gas ensures energy security, affordability, and sustainability, accelerating progress toward a more resilient and environmentally responsible global energy system.

Natural gas plays a vital role in promoting global food security and advancing the United Nations Sustainable Development Goal #2: Zero Hunger, which aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture. With more than 700 million people experiencing hunger in 2023—representing one in eleven people globally and one in five in Africa—natural gas makes a significant impact. It is a key ingredient in producing ammonia through the Haber-Bosch process, which is used to create nitrogen-based fertilisers. These fertilisers are essential for enriching soil and boosting crop yields, enabling farmers to grow more food on the same land and meet the nutritional needs of our growing global population. By making food production more efficient and dependable, natural gas helps reduce hunger and improve access to food worldwide. Looking to the future, responsibly using natural gas in agriculture is vital for maintaining stable food supply chains and ensuring that everyone has enough to eat.

Globally, over 2.1 billion people rely on traditional cooking methods—including firewood, charcoal, and agricultural residues. The widespread use of these solid fuels, especially in rural and low-income areas, poses significant health, environmental, and socio-economic challenges. Traditional biomass cooking methods are inefficient and release high levels of indoor air pollutants, including carbon monoxide and fine particulate matter. According to the World Health Organization (WHO), household air pollution from biomass cooking contributes to approximately 3.8 million premature deaths annually, making it a leading health risk factor in developing countries. In addition to severe health impacts, biomass use contributes to deforestation, soil degradation, and carbon emissions, exacerbating climate change and biodiversity loss. Addressing the clean cooking challenge requires transitioning to cleaner fuels such as natural gas, Liquefied Petroleum Gas (LPG), electric cooking, ethanol and biogas, among others. These options offer viable and scalable solutions for reducing indoor air pollution, environmental degradation, and health risks. Among these alternatives, natural gas and LPG stand out for their availability, affordability, and ease of distribution, making them practical choices for many regions. However, successfully implementing these clean cooking solutions demands comprehensive support through policy frameworks, technology transfer, financing, and capacity-building initiatives.

Clean air is essential for health, environmental balance, and overall quality of life. Natural, unpolluted air primarily consists of nitrogen (78%), oxygen (21%), and trace gases, including carbon dioxide and argon, essential for supporting life and environmental processes. However, rapid industrialisation, urbanisation, have increased air pollution levels globally, particularly in cities with high reliance on coal. Clean air is defined by low levels of pollutants, such as particulate matter (PM), nitrogen dioxide (NO₂), sulfur dioxide (SO₂), carbon monoxide (CO), and ground-level ozone (O₃), which are known to contribute to respiratory illnesses, cardiovascular diseases, and environmental degradation. Beijing's journey with air quality exemplifies both the challenges and progress cities face in combating pollution. Beijing experienced some of the world’s highest pollution levels for many yearsdue to rapid economic growth, industrial emissions, and vehicle exhaust. Particularly concerning were levels of PM2.5 (particulate matter smaller than 2.5 micrometres), which can penetrate the lungs and bloodstream, posing severe health risks. In 2013, air quality in Beijing reached critical levels, with the average PM2.5 concentration exceeding 90 µg/m³—well above the World Health Organization (WHO) recommended limit of 10 µg/m³ as an annual average. In response to these health and environmental concerns, the Chinese government hasimplemented the Blue Sky Policy to reduce pollution and improve air quality across major cities, including Beijing.

Beijing experienced some of the world’s highest pollution levels for many yearsdue to rapid economic growth, industrial emissions, and vehicle exhaust. Particularly concerning were levels of PM2.5 (particulate matter smaller than 2.5 micrometres), which can penetrate the lungs and bloodstream, posing severe health risks. In 2013, air quality in Beijing reached critical levels, with the average PM2.5 concentration exceeding 90 µg/m³—well above the World Health Organization (WHO) recommended limit of 10 µg/m³ as an annual average. In response to these health and environmental concerns, the Chinese government hasimplemented the Blue Sky Policy to reduce pollution and improve air quality across major cities, including Beijing.

Key policies included limiting coal consumption, transitioning to natural gas for heating, closing or relocating heavy-polluting industries, enforcing strict vehicle emissions standards, and promoting electric vehicles.

By 2020, these efforts yielded significant improvements: PM2.5 levels in Beijing dropped to an annual average of 38 µg/m³, a substantial improvement though still above WHO recommendations.

Natural gas plays a significant role in heating buildings due to its high efficiency, cost-effectiveness, and lower emissions compared to other hydrocarbon fuels. It is widely used for furnaces, boilers, water heaters, and other systems in residential, commercial, and industrial sectors, especially in colder climates with high heating demand. Modern natural gas furnaces can achieve efficiency ratings up to 98%, resulting in cost savings, reduced energy waste, and overall energy conservation. Additionally, natural gas combustion emits about 50–60% less carbon dioxide (CO₂) than coal, along with lower sulphur dioxide (SO₂) and nitrogen oxides (NOx) emissions, helping to reduce air pollution and support climate goals . Extensive pipeline networks also make natural gas a convenient and reliable energy source, ensuring continuous heating supply and enhancing energy security.

Beyond heating, natural gas serves as a key fuel for Combined Heat and Power (CHP) systems, which generate both electricity and useful heat from a single source. CHP systems achieve energy efficiencies of 60–80%, significantly higher than conventional power plants. These systems are ideal for industrial facilities, hospitals, and large buildings, offering on-site energy production, enhancing resilience during grid outages, and lowering operational costs. Moreover, the reduced emissions and improved energy use in natural gas-fueled CHP systems contribute to environmental sustainability. Overall, natural gas remains a critical energy source for heating and power generation, and continued innovation is necessary to maximise its efficiency and minimise emissions in line with global decarbonisation efforts.

Natural gas has increasingly emerged as a vital alternative fuel in the transport sector, evolving from a niche market to an important and growing segment. Traditionally dominated by oil-based fuels, the sector is now being reshaped by environmental considerations, economic competitiveness, and technological advancements, all of which are driving the adoption of natural gas-based fuels. Natural gas is widely recognised for its lower environmental impact compared to gasoline and diesel, offering significant reductions in greenhouse gas emissions, as well as lower levels of harmful pollutants such as particulate matter and carcinogenic compounds. For example, natural gas-fueled engines produce approximately 20% less greenhouse gas emissions than gasoline engines and about 15% less than diesel engines. Its use in transport is mainly in two forms: Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG). CNG is commonly used in light-duty vehicles, buses, and delivery trucks due to its cost advantages and lower emissions, while LNG, with its higher energy density, is better suited for heavy-duty trucks, long-haul transport, and increasingly for maritime applications.

The versatility of natural gas extends across various transport sectors, including automotive, maritime, aviation, and railways, with the agricultural sector also showing interest in replacing traditional diesel or gasoline engines. The environmental benefits are notable, with natural gas vehicles (NGVs) emitting up to 20% less CO₂ and up to 90% fewer nitrogen oxides (NOx) than diesel vehicles, supporting efforts to reduce urban air pollution and achieve climate targets. Moreover, adopting natural gas in transportation enhances energy diversification and security, particularly in countries with abundant gas resources, reducing reliance on oil imports. However, widespread adoption requires substantial investment in refueling infrastructure, especially for LNG, which remains largely limited to fleet and long-haul operations. Governments and the private sector are making efforts to expand CNG and LNG networks to overcome these challenges and capitalise on natural gas’ environmental and economic advantages, reinforcing its role as a key partner in decarbonising the transport sector.

Natural gas plays a crucial role in the chemical and petrochemical industry, serving as both a key feedstock and an energy source for many essential processes. Comprising mostly of methane, natural gas is used to create important chemicals like ammonia, methanol, and ethylene, which are vital for producing fertilisers, plastics, and synthetic fibres we use every day. It’s also used in steam methane reforming to produce hydrogen, a major building block for making various chemicals and fuels. In fact, natural gas makes up 29% of the global chemical and petrochemical sector: 15% is used as a feedstock and 14% as an energy source.

As a cleaner-burning option compared to coal and oil, natural gas helps reduce greenhouse gas emissions in chemical production. Moreover, as the industry shifts toward more sustainable practices, natural gas as a destination fuel, enabling the incorporation of renewable energy sources and fostering the advancement of greener technologies such as carbon capture and storage (CCS) systems. Overall, natural gas is vital for fostering innovation and enhancing efficiency in the chemical and petrochemical industries, contributing to global economic development while addressing environmental challenges.

Natural gas is currently the primary source of hydrogen production globally, accounting for approximately 75% of total hydrogen production. The most common method for generating hydrogen from natural gas is steam methane reforming (SMR), which involves reacting methane (CH₄) with steam at high temperatures to produce hydrogen (H₂) and carbon dioxide (CO₂) as by-products. This process is well-established and cost-effective, making it the dominant technology for large-scale hydrogen production. The use of natural gas in hydrogen production is not limited to traditional SMR. Advanced methods, such as autothermal reforming (ATR) and the incorporation of carbon capture, utilisation, and storage (CCUS), can reduce the carbon footprint of hydrogen production from natural gas. The combination of SMR or ATR with CCUS creates "blue hydrogen," a cleaner alternative that captures and stores up to 90% of the CO₂ emissions generated during the production process (Global CCS Institute, 2021). Blue hydrogen offers a pathway to scale up hydrogen production rapidly while maintaining progress toward carbon reduction targets. By capturing and storing emissions, blue hydrogen serves as a lever technology to a low-carbon hydrogen economy.

Natural gas-based hydrogen production is crucial for meeting the growing global demand for hydrogen, particularly in hard-to-decarbonise sectors such as heavy industry, transportation, and energy storage. Hydrogen is increasingly recognised as a versatile energy carrier that can sometimes be used in pure form in applications where direct electrification is challenging. For example, hydrogen can be used in fuel cells to power vehicles or blended into existing natural gas networks to reduce the carbon intensity of heating and electricity generation (Hydrogen Council, 2021). The scalability of natural gas-based hydrogen production allows for rapid expansion of hydrogen infrastructure and facilitates market adoption, laying the groundwork for a broader hydrogen economy.

Natural gas is playing a key role in improving access to electricity worldwide, especially in regions with limited energy infrastructure. As a cleaner and flexible hydrocarbons, natural gas offers an efficient way to generate electricity and stabilise power systems. Natural gas-fired power plants are quick to deploy, relatively cost-effective to build, and can be scaled to meet varying demand. They are also capable of providing reliable baseload power as well as peaking capacity, making them an essential component for energy systems transitioning from other carbon intensive energy sources to more sustainable ones. In many low- and middle-income countries, expanding access to electricity is a top priority for economic development and poverty reduction. Approximately 770 million people worldwide still lack access to electricity, primarily in sub-Saharan Africa and South Asia (World Bank, 2021). For these regions, natural gas-fired power generation presents a practical solution for rapidly expanding electricity access. The relatively lower cost and flexibility of natural gas infrastructure, compared to renewable energy systems that require extensive storage and grid enhancements, enable governments to provide stable and affordable electricity to underserved populations. This, in turn, supports economic growth, education, healthcare, and other vital sectors dependent on reliable power supply (UNDP, 2019).

Natural gas also serves as an enabler for renewable energy integration by providing grid stability. The intermittent nature of renewable energy sources like wind and solar can lead to supply fluctuations that strain energy grids. Natural gas power plants can quickly ramp up or down to balance supply and demand, complementing renewables and ensuring continuous access to electricity even during periods of low renewable generation (U.S. Department of Energy, 2020). This ability to stabilise the grid makes natural gas an essential part of modern energy systems.

Furthermore, natural gas infrastructure development, such as pipelines and power plants, can stimulate local economies by creating jobs and building local expertise in energy system management. In regions with existing natural gas reserves, tapping into domestic production can reduce reliance on imported fuels and lower energy costs, freeing up resources for other development priorities (AfDB, 2020).

Natural gas is key in water desalination, providing a reliable and efficient energy source to power desalination technologies. As global demand for freshwater grows due to population increase, climate change, and resource scarcity, desalination has emerged as a critical solution for meeting water needs in arid and semi-arid regions. Natural gas, with its relatively low carbon emissions compared to other hydrocarbons, supports energy-intensive desalination processes like thermal desalination and reverse osmosis (RO), helping to improve water accessibility sustainably.

Natural gas is often used to generate heat for water evaporation and condensation in thermal desalination processes, such as multi-stage flash (MSF) and multi-effect distillation (MED). These systems are prevalent in the Middle East and North Africa (MENA) region, where abundant natural gas reserves are leveraged to meet the high energy demand of desalination facilities. For example, countries like Algeria, Qatar and the United Arab Emirates rely heavily on natural gas-fired plants to power their desalination infrastructure, producing millions of cubic meters of potable water daily. Natural gas’s reliability and ability to provide continuous energy make it well-suited for large-scale desalination plants that require consistent heat and power inputs. In addition to thermal desalination, natural gas is used in electricity generation for RO, which is the most widely adopted desalination technology globally.

The flexibility of natural gas in providing both heat and electricity allows for hybrid desalination systems that combine thermal and membrane-based technologies, further optimising energy efficiency and reducing operational costs. Hybrid systems powered by natural gas can adjust to varying water demand and energy prices, offering resilience and cost-effective solutions in water-scarce regions.

Natural gas empowers women and children by improving access to clean energy and reducing health risks associated with dirty cooking fuels. In many developing countries, women and children are disproportionately affected by energy poverty, spending significant amounts of time collecting firewood, cooking with biomass, and living in homes exposed to indoor air pollution. Transitioning to natural gas and Liquified Petroleum Gas (LPG) asclean cooking fuels offers significant benefits that can improve health outcomes, free up time for education and economic activities, and enhance overall quality of life.

Using natural gas as a cleaner alternative to biomass for cooking and heating helpsmitigate health risks. According to the WHO, exposure to smoke from traditional cooking stoves using biomass and coal contributes to respiratory diseases, heart conditions, and premature deaths among women and children. Replacing these stoves with natural gas and LPG can reduce household air pollution by 50% or more, significantly decreasing the incidence of related illnesses. By improving indoor air quality, natural gas use contributes directly to better health outcomes, reducing disease burden and allowing women to focus on other responsibilities and opportunities.

Access to natural gas also has economic and educational implications for women and children. When clean energy is available, women and girls who typically bear the responsibility of gathering firewood have more time for education, skill development, and income-generating activities. Studies show that access to modern energy sources, including natural gas, is associated with higher school attendance rates among girls and increased female workforce participation. By reducing the time and physical burden of fuel collection, natural gas allows women to pursue economic independence and self-sufficiency, fostering gender equity and economic growth.

Furthermore, natural gas facilitates the establishment of energy-powered community services such as healthcare centres, schools, and women’s training programs. For instance, hospitals and clinics powered by natural gas can offer consistent healthcare services, including maternal and child care, without the disruptions caused by unreliable electricity supply. Reliable energy access is a key enabler of safe childbirth, vaccination programs, and health interventions, which directly impact women's and children's well-being (UNDP, 2019).

Although natural gas offers numerous benefits, ensuring equitable access is essential. Policy frameworks that prioritise infrastructure expansion to underserved and rural areas can maximise the positive impact of natural gas on women and children. Investment in community-based energy initiatives and subsidies for clean cooking technologies can further enhance access, making a tangible difference in women's and children's lives.

Natural gas is a critical component of the global energy mix, playing a key role in enhancing energy efficiency across various sectors, including power generation, industry, and residential heating. Its properties as a cleaner-burning fuel make it highly efficient in converting energy into useful work compared to other hydrocarbons, leading to significant emissions reductions and cost savings. For example, natural gas-fired combined cycle power plants achieve up to 60% or higher efficiencies, making them one of the most efficient forms of thermal electricity generation. This efficiency results from utilising both the electricity generated from gas turbines and the heat recovered from exhaust gases to power steam turbines.

In the industrial sector, natural gas is often used in high-temperature processes such as steel production, chemical manufacturing, and food processing. The energy efficiency of natural gas-driven industrial equipment, such as boilers and furnaces, can be further enhanced through advanced technologies like cogeneration or Combined Heat and Power (CHP) systems. CHP systems generate both electricity and useful thermal energy from a single fuel source, achieving overall efficiencies of 60-80% compared to separate heat and power generation. This dual-use capability reduces energy waste and can lead to substantial cost savings and lower carbon emissions.

Natural gas also plays a significant role in residential and commercial energy efficiency. High-efficiency natural gas appliances, such as furnaces, water heaters, and stoves, provide superior performance compared to their electric counterparts. Modern natural gas furnaces, for example, have efficiency ratings as high as 98%, meaning nearly all the fuel’s energy content is converted into heat for the home. This level of efficiency not only reduces energy consumption and utility bills for households but also minimises greenhouse gas emissions. Additionally, natural gas appliances typically offer faster heating times and better temperature control, contributing to user comfort and convenience.

Natural gas is currently the primary source of hydrogen production globally, accounting for approximately 75% of total hydrogen production. The most common method for generating hydrogen from natural gas is steam methane reforming (SMR), which involves reacting methane (CH₄) with steam at high temperatures to produce hydrogen (H₂) and carbon dioxide (CO₂) as by-products. This process is well-established and cost-effective, making it the dominant technology for large-scale hydrogen production.The use of natural gas in hydrogen production is not limited to traditional SMR. Advanced methods, such as autothermal reforming (ATR) and the incorporation of carbon capture, utilisation, and storage (CCUS), can reduce the carbon footprint of hydrogen production from natural gas. The combination of SMR or ATR with CCUS creates "blue hydrogen," a cleaner alternative that captures and stores up to 90% of the CO₂emissions generated during the production process. Blue hydrogen offers a pathway to scale up hydrogen production rapidly while maintaining progress toward carbon reduction targets. By capturing and storing emissions, blue hydrogen serves as a key enabler to a low-carbon hydrogen economy.

Natural gas-based hydrogen production is crucial for meeting the growing global demand for hydrogen, particularly in hard-to-decarbonise sectors such as heavy industry and transportation. Hydrogen is increasingly recognised as a versatile energy carrier that can sometimes be used in pure form in applications where direct electrification is challenging. For example, hydrogen can be used in fuel cells to power vehicles or blended into existing natural gas networks to reduce the carbon intensity of heating and electricity generation. The scalability of natural gas-based hydrogen production allows for rapid expansion of hydrogen infrastructure and facilitates market adoption, laying the groundwork for a broader hydrogen economy.

Natural gas is critically important for gas exporting countries as it drives economic growth, generating substantial revenue that supports national development, job creation, and infrastructure investment. Natural gas is a major source of revenue for exporting countries, contributing significantly to their GDP, national budgets and funding public programs. By exporting natural gas, these countries can secure foreign exchange, stabilise their economies, and fund infrastructure, health, and education initiatives. Gas exporting countries with substantial natural gas reserves can leverage their resources to enhance energy security, both domestically and internationally. These reserves give them the ability to meet local energy demands while also building influence in global markets. Additionally, the natural gas industry in most gas exporting countries provides a significant share of employment opportunities and drives skills development across the energy sector, as it supports a wide range of associated industries, from petrochemicals to equipment manufacturing, creating a more diverse industrial base and fostering technological advancement. Natural gas exports attract foreign investment in infrastructure which further drives economic development and technology transfer. Notably, as a cleaner-burning fuel, natural gas aligns with the global shift toward more sustainable energy, enabling these countries to play a pivotal role in the energy transition.