The document provides a comprehensive overview of the natural gas supply chain, focusing on North America, Europe, and China through detailed statistical analyses and future forecasts up to 2025 under various economic scenarios. It explores the formation, characteristics, and market dynamics of natural gas, highlighting its significance as a cleaner energy source compared to other fossil fuels. Additionally, the report examines production, distribution, and pricing trends in the natural gas markets of the mentioned regions, alongside the historical context of oil prices and their influence on the gas supply chain.

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Natural Gas Supply Outlook

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Natural Gas Supply Outlook
Introduction
Notes on the Scope of the Report
Geographical Scope
Chronological Scope
The Natural Gas Supply Chain
The Natural Gas Supply Chain In The North American Market
Geographies
Price
Processing
Price
Shipping
Price
Distribution
Marketing
The Natural Gas Supply Chain In The European Market
Production
Geographies
Index

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Price
Processing
Price
Shipping
Price
Distribution
Price
Marketing
The Natural Gas Supply Chain In China
Production
Processing
Shipping
Distribution
Price
Gas Market Scenario Forecasts to 2025 Based on Different Economic
Scenarios
Natural Gas Supply Chain in the North American Market To 2025
Index

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North American Natural Gas Supply Chain to 2025 – Medium Economic
Scenario
North American Natural Gas Supply Chain to 2025 – Positive Economic
Scenario
North American Natural Gas Supply Chain to 2025 – Negative Economic
Scenario
Natural Gas Supply Chain in the European Market To 2025
Europe Natural Gas Supply Chain to 2025 – Stable Economic Scenario
Europe Natural Gas Supply Chain to 2025 – Positive Economic Scenario
Europe Natural Gas Supply Chain to 2025 – Negative Economic Scenario
Natural Gas Supply Chain in China Market in 2025
China Natural Gas Supply Chain to 2025 – Stable Economic Scenario
China Natural Gas Supply Chain to 2025 – Positive Economic Scenario
China Natural Gas Supply Chain to 2025 – Negative Economic Scenario
Appendix
Research Methodology
Chronological Scope
Quantification
Index

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Terms
Abbreviations
Currencies
Primary Research
Research Enquiries
The Business Research Company
Index

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Figure 1: Historical Brent Crude Oil Spot Price($ Per Barrel)
Figure 2: Historical Henry Hub Natural Gas Spot Price($ per Million BTU)
Figure 3: World Dry Natural Gas Production By Region, Trillion Cubic Feet
1980-2010
Figure 4: Gas Supply Chain
Figure 5: Natural Gas Processing Plants By Capacity In The US
Figure 6: Natural Gas Transmission Path In The US
Figure 7: Natural Gas Pipeline Network In The US
Figure 8: US Natural Gas Imports, Exports And Net Imports 1996-2014
Figure 9: Price Differential Between US Natural Gas Imports And Exports
Figure 10: US Import And Export Locations
Figure 11: Natural Gas Prices Through The Supply Chain In The US, 2012
Figure 12: Natural Gas Distribution Segments
Figure 13: LNG Infrastructure And Underground Storage Facilities In Europe
Figure 14: Pipeline Network In The Western European Region
Figure 15: Europe’s Imports Of Natural Gas By Source
Figure 16: Development of European Gas Hubs
Figure 17 : Evolution Of Marketed Gas Price By Segment During 2008-12
Figure 18 : Proven Geological Reserves In China, 1961-2009
Figure 19 : Gas Resources In China
Figures

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Figure 20 : China National Gas Production 2007-2013, tcf
Figure 21 : Gas Infrastructure In China
Figure 22 : China’s Natural Gas Imports By Source
Figure 23 : China Natural Gas Consumption, 2007-2013, tcf
Figure 24 : End-Users Gas Prices In Selected Chinese Cities, 2011
Figure 25: US Production of Shale Gas Projections To 2025 And Beyond
Figure 26 : US Natural Gas Imports and Exports To 2025 And Beyond
Figure 27: Expected Growth in Consumption of Natural Gas To 2025 And
Beyond
Figure 28 : Projected Use of Natural Gas in the US Transportation Sector To
2025 And Beyond
Figure 29 : Europe's Natural Gas Supply Sources To 2025 And Beyond
Figure 30 : Natural Gas Demand Prospects in Europe To 2025 And Beyond
Figure 31 : China's Natural Gas Supply Sources To 2025 And Beyond
Figure 32 : Outlook For Natural Gas Supply In China To 2025 And Beyond
Figure 33: China’s Natural Gas Consumption Mix To 2025 And Beyond
Figures

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Table 1 : US Proved Reserves And Changes During 2012-13
Table 2: Natural Gas Plant Processing During 2010-14
Table 3: Number of Gas and Gas Condensate Wells
Table 4: Natural Gas Wellhead Price
Table 5: Natural Gas Imports And Exports In The US
able 6: US Natural Gas Imports And Exports, A Comparison Between 2013
And 2014
Table 7: Natural Gas Prices In The US From 2009 To 2014
Table 8 : Price Of Natural Gas Delivered To Residential Consumers In
Various US States
Table 9: Dry Natural Gas Production In Europe, 2009-2013, bcf
Table 10: Dry Natural Gas Consumption In Europe
Table 11: Historical Average German Import Price And UK Heren NBP Index
Table 12: China National Gas Production
Table 13 : Pipeline Tariffs in China
Table 14 : China National Gas Consumption
Tables

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 This report deals with the Supply Chain for natural gas.
 The report begins with an overview of what natural gas is, how it is formed,
its characteristics, where it is found and some associated statistics. It explains
the natural gas Supply Chain in outline, mentioning parts which are dealt with
in detail later.
 The report then deals with individual parts of the Supply Chain, in detail, in
North-America, Europe and China. It covers statistics and processes that are
involved in each of these markets.
 The last part of the report covers expected future trends down the Supply
Chain in each of these markets under different oil price scenarios over the
next ten years, to the year 2025. The first scenario deals with a mean oil price
of ~$90, expected progress and related outlook. The later part of the
forecasting scenarios deals with a high oil price scenario (~$120) and a low oil
price scenario (~$60).
Introduction

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 As this last part of the report shows, the market and the Supply Chain for
natural gas are influenced by the oil price.
The first part of this report relates to the current natural gas Supply Chain in
2015. The background to the natural gas Supply Chain in 2015 is an oil and gas
price as shown in the figures below.
 The price of natural gas has been relatively low for the last five years, with
an average price for Henry Hub natural gas of around $3.5 per million BTU
($975 cubic feet) while the price for Brent Crude oil has been relatively stable
at above $100 per barrel until mid 2014 at which point it dropped
dramatically.
However the fall in oil price has not had a major effect on the natural gas
Supply Chain over the last year.
Introduction

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Historical Brent Crude Oil Spot Price($ Per Barrel)

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Historical Henry Hub Natural Gas Spot Price($ per Million BTU)

13. The Natural Gas Supply Chain
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 Natural gas is the gas formed from fossil fuels over hundreds of millions of
years. This gas, in the simplest terms, is a mixture of hydrocarbons.
 Natural gas is found in the earth’s crust in reservoirs. It is broadly of two
types: conventional gas and unconventional gas.
 Conventional gas is found in permeable reservoirs and is considered easy to
extract with the help of traditional drilling methods. It is usually found along
with oil in both onshore and offshore reservoirs.
 Unconventional natural gas is found in the earth’s crust other than in
permeable reservoirs. Unconventional gas is further classified as coal seam gas
or shale gas.
Natural gas has emerged as one of the most important sources of fuel. It is
easy to store and transport large amounts of natural gas in the form of a gas or
a liquid.

14. The Natural Gas Supply Chain
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Hence, it has also become a global commodity which is traded between
regions. Natural gas is abundantly available and has a low carbon content as
when compared to other fossil fuels.
Its combustion is considered cleaner than other hydrocarbons as a result of
which it has become a highly used energy resource.
The image below shows the world dry natural gas production by region in
trillions of cubic feet.
(Dry natural gas has had various hydrocarbons and fluids removed from the
pure natural gas, a process required to bring it to pipeline quality.)

15. World Dry Natural Gas Production By Region,
Trillion Cubic Feet 1980-2010
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16. Gas Supply Chain
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Upstream
• Exploration
• Production
Midstream
• Processing
• Storage
• Transportation
• Marketing
Downstream
• Refining
• Distribution
• Supply

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Production is the process by which natural gas is extracted from wells. In
2013, in North America there were about 6,300 natural gas producers . These
producers are companies which range from those having a global presence to
those having only a partial stake in a particular well. The globally present
production companies are called “majors”. There are over 20 active majors in
North America.
EIA estimated that there were a total of 354 trillion cubic feet of natural gas
reserves in the United States as of December 31, 2013 .
The table below shows total US proved reserves and reserves changes
during 2012-13 . The percentage change is calculated from unrounded
numbers. The total wet natural gas reserves in North America increased to 354
trillion cubic feet in 2013 from 322.7 trillion cubic feet in 2012.
The Natural Gas Supply Chain In The North American Market

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Table 1 : US Proved Reserves And Changes During 2012-13
Wet Natural Gas in Trillion
Cubic Feet
U.S. proved reserves at
December 31, 2012 322.7
Total discoveries 53.0
Net revisions 2.8
Net Adjustments, Sales,
Acquisitions
2.0
Production (use of reserves) -26.5
Net additions to U.S. proved
reserves
31.3
U.S. proved reserves at
December 31, 2013
354.0
% change in U.S. proved reserves 9.7%

19. US Natural Gas Imports, Exports
And Net Imports 1996-2014
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The European Union had a total of 1.573 billion cubic meters (55.54 billion
cubic feet) of proved natural gas reserves as of January 2014 .
The table below shows dry natural gas production values of the countries in
the European region from 2009 to 2013 .
Europe produced a total of 9,982 billion cubic feet (bcf) of dry natural gas in
2013; with only small fluctuations, this figure changed little between 2009 and
2013.
In 2013 Norway had the highest production at 3,840 bcf followed by The
Netherlands with a production of 3,052 bcf; in these countries, too, the
fluctuations in output over the period 2009 to 2014 were minor.
 The UK, the third largest country in Europe for natural gas production,
showed a steady decline in output over the period, so that production in 2013
was about 35% lower than in 2009.
The Natural Gas Supply Chain In The European Market

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Table 9: Dry Natural Gas Production In Europe, 2009-2013, bcf
Dry Natural Gas Production In Europe, 2009-2013 (bcf)
2009 2010 2011 2012 2013
Europe 10,654 10,902 9,965 10,205 9,982
Albania 1.06 0.35 0.35 0.6 0.67
Austria 62.12 63.92 62.72 67.31 48.35
Bulgaria 0.35 1.77 14.56 2.83 9.82
Croatia 69.92 66.89 53.11 57.21 55.09
Czech Republic 6.29 7.17 6.5 9.29 8.9
Denmark 297.32 290.29 249.5 204.93 171.1
France 31.08 26.49 21.9 18.86 11.97
Germany 621.05 526.26 523.69 462.2 416.15
Greece 0.39 0.25 0.21 0.21 0.18
Hungary 104.81 102.41 97.68 78.89 68.83
Ireland 13.81 13.67 12.25 7.88 12.18
Italy 282.98 296.86 298.38 303.89 273.16
Netherlands 2,785.51 3,130.75 2,850.84 2,842.54 3,051.96
Norway 3,663.93 3,755.75 3,579.74 4,051.58 3,840.01
Poland 207.02 214.68 220.61 218.71 219.16
Romania 383.52 373.99 374.69 375.26 385.39
Serbia 6.71 12.36 18.36 19.85 24.3
Slovakia 3.64 3.67 4.27 5.3 4.38
Slovenia 0.11 0.25 0.07 0.07 0.11
Spain 0.49 1.8 1.84 2.15 1.98
Switzerland 0.14 0.21 0.28 0.32 0.46
Turkey 24.16 24.08 26.87 22.32 18.96
United Kingdom 2,087.12 1,988.23 1,546.09 1,452.19 1,358.74

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