Procurement Market Intelligence Report
Natural Gas
Sourcing Guide & Market Intelligence
Smarter cost management starts with comprehensive market intelligence
Quick Navigation
Natural Gas Global Overview
Definition
Summary
Natural gas is a type of fossil fuel, meaning it is a nonrenewable resource, that comes in liquefied (LNG) or compressed (CNG) forms. Natural gas is measured in British Thermal Units (BTUs) or per million BTUs. Suppliers provide natural gas to buyers for use in heating, cooking, and power generation, as well as for fuel in transportation and manufacturing fertilizers. Key buyers include consumers and commercial users.
This Report Includes:
- Compressed Natural Gas
- Liquified Natural Gas
Not in this Report:
- Oil
- Coal
- Gasoline
- Solar Energy
Global Natural Gas Procurement Trends
Discover the top international trends affecting procurement in the global Natural Gas market.
Warning Trends
Tariffs to negatively impact the fuel additives, lubricants, and anti-corrosive materials sector
- The United States imposed a blanket 10.0% tariff on all US imports, a 25.0% tariff on goods imported from Mexico and Canada, and a 10.0% tariff on energy imports from Canada. According to the Energy Information Administration, Canada and Mexico account for 71.2% of US crude oil imports, 35.7% of US petroleum product imports, and 99.6% of US natural gas imports.
- With the increase in tariff rates, as well as retaliatory tariffs imposed by affected countries, oil, gasoline, diesel, and natural gas prices have been falling due to concerns about slowing global economic growth and energy demand. Falling oil and gas prices could put downward pressure on prices for fuel additives, lubricants, and anti-corrosive materials, as these products are derived from petroleum.
- Tariffs on steel and aluminum and falling oil prices have increased vendor risk for upstream suppliers in the sector; according to the New York Times, tariffs on steel have pushed up the cost of new wells by 10.0% to 20.0%. According to S&P Global, oil country tubular goods, made from steel, are anticipated to rise 15.0% with the increase in tariffs, and since these expenses account for 8.0% to 10.0% of drilling and completion costs, the fuel additives, lubricants, and anti-corrosive materials supply chain will see increased risk of disruption.
- US tariffs are expected to reduce imports and increase domestic prices for fuel additives, lubricants, and anti-corrosive materials such as biodiesel, ethanol, propane, and butane as Canada and Mexico are key suppliers of these products. According to Butane-Propane News, Canada supplies one of every seven barrels of propane used in the United States, and Canada accounts for 71.8% of US antifreeze imports.
- The tariffs on Canada and Mexico negatively impact US refiners as Canada accounts for 27.0% of total US refinery demand and some refineries are dependent on heavier or sour grades of crude oil from Canada. As refiners’ margins are squeezed with higher costs for imports and falling demand, prices for refined fuel additives, lubricants, and anti-corrosive materials will likely rise as refiners look to maintain profitability.
Global Natural Gas Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1China | 1,175 |
| #2Europe | 750 |
| #3India | 465 |
Explore supplier concentration across the globe
We've uncovered the 11 top regions for global procurement, based on feedback from our most strategic clients. Access vendor counts for each unique region when you subscribe.
Geography Drilldown - US, Canada & Europe
Average Cost of Natural Gas
United States
2025 Market Pricing$1.00 to $XX.XX
per million BTUsCanada
Europe
Average Price
Prices in the Natural Gas market range from $1.00 to $XX.XX, depending on Delivery Destination, Processing, Sector and Volume. For example, lower prices are associated with Gulf Coast ($2.00 to $12.00 per million BTUs) and Lower Atlantic ($2.00 to $11.00 per million BTUs), whereas higher prices are associated with West Coast ($4.00 to $16.00 per million BTUs and New England ($5.00 to $17.00 per million BTUs).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Natural Gas Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Natural Gas market, prices in the US have declined -20.4% from 2022 to 2025. and --47.9% in Europe.
United States (2022-2025)
-20.4%
Compound Annual Growth RateCanada (2021-2024)
-11.0%
Compound Annual Growth RateEurope (2022-2025)
-47.9%
Compound Annual Growth RateWondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Natural Gas
Total cost of ownership is Low in the Natural Gas market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Disposal
Storage
Additional Fees
Unforeseen
Delays
Emergencies
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to 0.5 in the United States. Buyer power is most positively impacted by Average Vendor Risk. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Oil Drilling & Extraction Firms
- Mining, Oil & Gas Machinery Manufacturers
- Oil & Gas Pipeline Construction Firms
2nd
Tier Suppliers
- Oil & Gas Field Service Providers
- Steel Rolling & Drawing Firms
- Engine & Turbine Manufacturers
- Metal Pipe & Tube Manufacturers
Biggest Natural Gas Suppliers in the US by Revenue
The largest Natural Gas vendors by revenue in the US are Duke Energy Corporation, Dominion Energy, Inc. and Devon Energy Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | Global | Omaha, NE | >10,000 | < 5 | ||||
| The Southern Company | National | ATLANTA, GA | >10,000 | < 5 | ||||
| Pg&E Corp | Local | OAKLAND, CA | >10,000 | < 5 | ||||
| Exelon Corporation | International | CHICAGO | >10,000 | < 5 | ||||
| Targa Resources Corp. | HOUSTON, TX | 1,001-10,000 | < 5 | |||||
| Kinder Morgan, Inc. | International | HOUSTON | >10,000 | < 5 | ||||
| Devon Energy Corporation | OKLAHOMA CITY | 1,001-10,000 | < 5 | |||||
| Dominion Energy, Inc. | National | RICHMOND, VA | >10,000 | < 5 | ||||
| Nisource Inc. | Regional | MERRILLVILLE, IN | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Natural Gas market is 9.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is rising, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Imports represent a very minimal share of the market as the United States is a net exporter of natural gas and remains one of the primary producers of natural gas globally. While buyers could seek imports from neighboring countries like Canada to increase supplier options to buyers and improve negotiation power, imported natural gas carries a higher risk of spilling and leaking over longer distances, as well as higher prices from import tariffs and greater transportation costs.
The financial risk level for suppliers of natural gas is high due to high capital costs and the resulting debt. Because of the recent spike in domestic extraction, natural gas suppliers have been investing heavily in improving and growing their operations and expanding their natural gas transportation methods. However, bankruptcy risk is mitigated by healthy profit margins.
During the past three years, market share concentration has been low in the natural gas market. While there are an estimated 445 suppliers in the market, none control more than 5.0% of market revenue. ProcurementIQ estimates that the top four suppliers generate less than 15.0% of market revenue.
Supply chain risk is high in the natural gas market. While there is little risk that a supplier will be unable to source oil and gas from upstream suppliers, especially because domestic production has been strong, the prices of these materials are highly volatile.
As political debates over natural gas intensify, the pace and frequency of change in market regulations can be anticipated to increase. Decisions on federal land sales, pipeline construction, exports, and industry-specific taxes will contribute to volatility in the supply of natural gas domestically.
Supplier Information
Nextera Energy Inc.
Nextera Energy Inc. is a private company operating in the utilities and construction sectors. The company's offerings include renewable energy construction services and natural gas. The company is currently headquartered in United States of America, United States of America. Subscribe to learn more
West Texas Gas, Inc.
West Texas Gas, Inc. is a private company operating in the utilities sector. The company's offerings include natural gas. Founded in 2017, the company is currently headquartered in United States of America. Subscribe to learn more
Duke Energy Corporation
Duke Energy Corporation is a private company operating in the utilities and finance and insurance sectors. The company's offerings include natural gas and renewable energy credits brokerage services.. Subscribe to learn more
Atmos Energy Corp
Atmos Energy Corp is a public company operating nationally in the utilities sector. The company's offerings include natural gas. Founded in 1906, the company is currently headquartered in Dallas, Texas, United States of America with an estimated 4791 employees. Subscribe to learn more
Nisource Inc.
Nisource Inc. is a public company operating regionally in the utilities sector. The company's offerings include natural gas. Founded in 2015, the company is currently headquartered in MERRILLVILLE, Indiana, United States of America with an estimated 7162 employees. Subscribe to learn more
Dominion Energy, Inc.
Dominion Energy, Inc. is a public company operating nationally in the utilities sector. The company's offerings include natural gas. Founded in 1983, the company is currently headquartered in RICHMOND, Virginia, United States of America with an estimated 17200 employees. Subscribe to learn more
Devon Energy Corporation
Devon Energy Corporation is a public company operating in the utilities sector. The company's offerings include natural gas. Founded in 2017, the company is currently headquartered in OKLAHOMA CITY, Oklahoma, United States of America with an estimated 1800 employees. Subscribe to learn more
Kinder Morgan, Inc.
Kinder Morgan, Inc. is an energy infrastructure company operating in North America. It owns and operates an interest in pipelines, terminals, natural gas storage, oil and gas-producing fields, and facilities for renewable natural gas, liquefied natural gas, and landfill gas-to-electric. Its pipelines transport... Subscribe to learn more
Targa Resources Corp.
Targa Resources Corp. is a public company operating in the utilities sector. The company's offerings include natural gas. Founded in 2018, the company is currently headquartered in HOUSTON, Texas, United States of America with an estimated 2850 employees. Subscribe to learn more
Accelerate the vendor selection process
Get a clear picture of the competition in a market and discover which vendors are best-suited for your sourcing needs. Our supplier profiles include hard-to-find financial ranges for private companies, cover public company data and feature an interactive competitor matrix.
Procurement Management KPIs for the Natural Gas Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Order Value and Average Resolution Time. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Delivery and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Order Value | Average value of each natural gas shipment Total revenue | Measuring the average value can help buyers assess spending behaviors. The average order value can be used to evaluate buyers' willingness to pay for a company’s products. | |
| Average Resolution Time | Total resolution time Number of resolved tickets | The average resolution time represents the average amount of time it takes to resolve a customer support ticket. Vendors that can effectively resolve issues with delivery, billing, and pricing can help minimize disruptions for natural gas buyers. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Distribution
What is your past experience in working with a company of my size and operation specialty?
How many production and distribution points do you have around the United States?
Customer Service
How do you track customer satisfaction and do you have client references I can review?
How do you ensure timely and accurate shipping? What systems do you have in place to manage outgoing shipments?
Quality Control
What systems do you have in place to measure the quality of your natural gas supply?
How often do you provide leak tests? Are these included in the service contract or is there an additional cost?
The ultimate prep for procurement negotations
View all 27 negotiation questions for this category when you subscribe.
Natural Gas RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe what kind of business they operate.
Buyers should include the full addresses of all delivery locations.
Statement Of Need
Buyers should explain what they intend to use the natural gas for.
Buyers should provide a monthly overview of their historical natural gas usage in the past year.
Project Budget
Buyers should include the index price per million BTUs and a fixed price per million BTUs.
Buyers should include the budgeting fees for transporting the natural gas to their location.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
Copyright © 2025 ProcurementIQ.
All Rights Reserved.