GCC Natural Gas Market Analysis

GCC Natural Gas Market Analysis

The industrial segment is anticipated to cross USD 38 billion by 2034. The industrial applications of natural gas are expanding rapidly as countries seek to diversify their economies, reduce carbon emissions, and enhance energy efficiency. Furthermore, the growing adoption of natural gas as a replacement fuel for oil and coal in various energy-intensive industries, including metal and cement manufacturing, keeping a lower carbon footprint, thereby, abiding by the stricter environmental regulations will further contribute to the industry growth.
 

The natural gas market from transportation natural gas segment is projected to witness a CAGR of over 4.5% through 2034, driven by the need for cleaner, more efficient energy sources and a broader push towards sustainability. Moreover, compressed natural gas (CNG) and liquefied natural gas (LNG) have emerged as a preferred alternatives to traditional fuels including diesel and gasoline across the transport sector, offering lower emissions and cost-effective solutions.
 

Natural gas utilization across steam generation is set to grow significantly owing to the widespread adoption across energy-intensive sectors, including power generation, water desalination, petrochemical processing, refining operations, and fertilizer manufacturing, among others. The market continues to expand as governments implement supportive policies for industrial development and pursue economic diversification strategies, creating favorable conditions for sustained growth in these sectors.

Saudi Arabia natural gas market is set to reach USD 15 billion by 2034. increasing focus on unconventional gas production and rising consumption levels. Regulatory policies supporting the monetization of regional reserves contribute to market expansion. growing exploration and production activities, supported by favorable fiscal policies aimed at reducing import dependency further augmenting the industry landscape.
 

For instance, in July 2024, Saudi Aramco in the Eastern Province and Empty Quarter regions discovered multiple oil and gas fields. The findings comprise two unconventional oil fields, an Arabian light oil reservoir, and several gas deposits. Moreover, availability of substantial proven reserves across the nation, increasing domestic production capacity and reduced dependence on gas imports, will contribute to the industry growth.