Natural gas is a fossil fuel found beneath the surface, made up of methane gas. Companies usually drill to the ground to extract natural gas. However, it is also produced using a process called fracking – in which oil and gas are extracted from shale rocks. Natural gas is often stored underground in depleted oil and gas fields, salt caverns, and aquifers. It is used for heating, cooking, fueling vehicles, and generating electricity.
The demand for natural gas is on the rise, and Russia’s invasion of Ukraine has a major role in it. In the last few years, a lot of volatility in the energy sector has been seen, but natural gas is positioned for steady growth over the next decade. And which companies stand to gain from it.
In this article, our Konnect my Team has discussed about the 10 best natural gas companies in the world, but before we proceed to the list, here are some quick facts about natural gas that you should know:
Interesting Facts About Natural Gas
- Natural gas is colorless and odorless, so mercaptan (a chemical) is added to give it a distinct smell for detecting leakages.
- Natural gas can be used in making fertilizers, plastics, and other products.
- The world’s largest natural gas field is the South Pars/North Dome field, located in the Persian Gulf and shared by Iran and Qatar.
- The U.S. has at least 2.5 million miles of natural gas pipelines.
- A very first natural gas pipeline in the United States was built in 1821 in Fredonia, New York.
- Natural gas is often used to power backup generators during power outages. Also, it is used to heat more than half of the homes in the United States.
Top 10 Natural Gas Companies in 2023 by Revenue
| Company | Country | Revenue 2022 | Revenue 2023 |
| Shell | The U.K. | $ 499.25 billion | $ 482.09 billion |
| Aramco | K.S.A. | $ 436.37 billion | $ 452.27 billion |
| China National Petroleum (Petro China) | China | $ 296.56 billion | $ 296.47 billion |
| Sinopec | China | $ 251.65 billion | $ 271.45 billion |
| Total Energies | France | $ 150.86 billion | $ 207.43 billion |
| Chevron | The U.S. | $ 145.88 billion | $ 174.27 billion |
| B.P. | The U.K. | $ 190.01 billion | $ 272.66 billion |
| ADNOC | U.A.E. | $ 127.60 billion | $ 166.54 billion |
| Equinor | Norway | $ 93.42 billion | $ 142.09 billion |
| PETRONAS | Malaysia | $ 135.96 billion | $ 127.12 billion |
Analysis of Natural Gas Companies
- Shell being in the top position, continues to rule as the most valuable oil & gas brand despite a 3% brand value reduction.
- Aramco is gaining quickly on Shell and is close to filling the gap. Aramco has the highest Sustainability Perceptions Value, which is equivalent to $4.5 billion.
- TotalEnergies and Chevron are on the rise, overtaking B.P.
- PETRONAS is again on the list of top 10 in 2023 by maintaining its position as the strongest oil & gas company.
- Qatargas also should be mentioned as the fastest-growing oil & gas company, with its growth up by 147% in the last 12 months.
- However, Russian companies are in decline after the catastrophic impact of the invasion of Ukraine and the resultant sanctions.
1. Shell:
After solid brand value growth of 18% in 2022, Shell’s brand value reduction in 2023 suggests that the brand should be clear on its strategy towards the energy transition and related communication in the future.
Shell has taken a global leadership role in helping customers divest from Russia in the wake of Russia’s invasion of Ukraine and helped provide some energy security to Europe. Shell has benefited from increased hydrocarbon prices, following a year of high prices after disrupted gas supplies, and the oil demand increased as global economies headed towards normality after the Covid-19 pandemic.
Furthermore, the appointment of a new C.E.O., Wael Sawan, in January 2023 and a subsequent renewed strategy geared towards catering to increased Oil & Gas demand has provided a more positive outlook for investors.
It seems that Shell is on the path of achieving good brand value growth in 2024. However, with increasing awareness and a sustainable approach, there’s a threat that people may develop negative perceptions about Shell and other oil and gas companies. The leading companies obviously will be the center of criticism.
2۔ Aramco:
The Saudi Arabian oil and gas giant is the second most valuable brand in the industry. Aramco is gaining on Shell and has benefited from a surge in prices and demand for oil & gas this year, taking market share away from sanctioned Russian companies. Its brand value has gone up 4% to US$45.2 billion.
With Aramco’s improved brand positioning and awareness strategy, the company is on its way to being the leading company by revenue.
Aramco has looked to expand its operations in the past year, further increasing its global presence and reach.
A collaboration with the Chinese Shandong Energy Group is also in the pipeline to explore potential integrated refining and petrochemical opportunities in China.
3. PetroChina:
PetroChina is poised to grow as China’s largest oil and gas producer. This state-owned company produces over 4 million barrels of oil equivalent daily, supplying nearly 60% of China’s oil and 95% of its natural gas.
PetroChina’s stock price has climbed over 50% in the past year, but analysts predict more room for growth. China’s natural gas market is expanding rapidly, and PetroChina is poised to capture the lion’s share. With massive investments in new supply infrastructure underway, PetroChina will be pumping out profits for years.
PetroChina is a compelling choice for exposure to China’s booming natural gas market. They have a dominant position, ambitious growth plans, and the full backing of the Chinese government.
4. Sinopec Corp:
Established in 2000, Sinopec explores, produces, transports, stores, refines, and markets oil and natural gas.
Sinopec’s refining capacity exceeds 260 million tons annually at its 32 refineries across China. They produce various petroleum products, including gasoline, diesel, kerosene, synthetic fibers, and plastics.
Sinopec continues to invest heavily in new energy and green initiatives. They aim to produce biofuel ethanol and biodiesel and have invested in solar, wind, and geothermal energy projects.
Overall, Sinopec Corp dominates China’s oil and gas industry. With increasing energy needs in China and Sinopec’s investments in new energy, this company is set to thrive over the coming decades.
5. TotalEnergies:
TotalEnergies’ brand value is up 37% to $20.7 billion. The oil and gas company has risen one place and entered the top five. The company has also benefited from a favorable industry environment, increasing its hydrocarbon production and L.N.G. sales. Its exploration and production arms also succeeded, making discoveries in Cyprus, Namibia, Suriname, and Brazil in 2022, helping bolster cash flow. The company is also looking to diversify, growing its petrochemical operations with the launch of the Amiral project, an integrated complex in Saudi Arabia.
6. Chevron:
Like TotalEnergies, the brand value of Chevron is up by 19% to $17.4 billion. The company has seen healthy growth, also climbing the list to strengthen its place in the ranking. Chevron delivered record earnings and cash flows in 2022 and is continuing to invest in new projects while paying down debt. It also invests in growing traditional and new energy supplies to meet the increasing demand for affordable, reliable, and ever-cleaner energy. TotalEnergies and Chevron have overtaken B.P., which has dropped two places in the ranking after a 12% brand value reduction to $16.7 billion.
7. B.P. (British Petroleum):
British Petroleum is a natural gas giant from the U.K. It is one of the world’s largest oil and gas companies, and its production has increased over 60% in the last decade.
It has major natural gas projects in Trinidad and Tobago, Egypt, and Indonesia.
B.P.’s natural gas reserves contain over 42 trillion cubic feet of natural gas, enough to fulfill total U.S. demand for over a year.
B.P. is investing heavily in new natural gas projects, especially in L.N.G. It has interests in L.N.G. facilities in Indonesia, Trinidad and Tobago, and Egypt.
However, B.P. is also switching to renewables and aims to reduce oil and gas production by 40% by 2030. It plans to invest $70 billion in renewable energy and transition its business.
8. ADNOC
Abu Dhabi National Oil Company (ADNOC) is one of the top energy producers globally. As the primary catalyst for the U.A.E.’s growth and diversification, ADNOC aims to maximize the value of the nation’s hydrocarbon resources.
ADNOC currently produces around 3 million barrels of oil and 10.5 billion cubic feet of natural gas daily.
However, ADNOC has planned an accelerated growth strategy to increase oil production capacity to 5 million per day by 2030.
To achieve these goals, ADNOC is:
- Leveraging new technology and partnerships to unlock and maximize value from Abu Dhabi’s oil and gas resources.
- Pursuing downstream expansion to create new revenue streams and business opportunities.
- Optimizing costs and increasing operational efficiency across its value chain.
- Attracting new partners and co-investors to drive technology, expertise, and financial capital into ADNOC’s business.
With its world-class assets, expertise, and resources, ADNOC is well-positioned to succeed in today’s energy market. ADNOC aims to create value for its shareholder, open new opportunities for its partners, and provide long-term benefits to the U.A.E.
9. Equinor
Equinor is Norway’s largest company listed on the Oslo and New York stock exchanges. Focused on oil, gas, and new energy solutions, the company aims to shape the future of energy and improve people’s lives.
Equinor is one of the world’s largest offshore operators with a strong track record of exploration success. They have discovered oil and gas resources for more than 50 years and have developed world-class projects. Today, Equinor is developing new oil and gas projects and renewable energy projects like offshore wind farms.
Some key facts about Equinor:
- It has more than 21,000 employees worldwide.
- Operates on the Norwegian continental shelf and in North and South America, Africa, Asia, and Oceania.
- Aims to build a material industrial position in renewable energy, especially offshore wind. They have developed offshore wind projects in the U.K., the US, Poland, and South Korea.
- Has set a target to reduce net carbon intensity by at least 50% by 2050. Investing significantly in renewable energy and new technologies like carbon capture and storage.
- Revenue in 2020 was USD 45.8 billion. Net income was USD 1.4 billion.
Overall, Equinor is in an excellent position to help meet the world’s energy needs sustainably and affordably for future generations. They aim to shape the energy future and improve lives through oil, gas, and new energy solutions.
10. PETRONAS:
PETRONAS’ brand value is down by 7% to $12.7 billion. It is also one of the strongest oil & gas brands. PETRONAS has committed to allocating 20% of its capital for decarbonization projects and cleaner energy solutions from 2023 to 2026.
In 2022, PETRONAS launched Gentari, a wholly owned clean energy solution, to boost renewable energy in the Asia Pacific. While being supported by PETRONAS in its growth phase, Gentari will eventually operate as an independently managed entity. It will focus primarily on renewable energy, hydrogen, and green mobility solutions for all customers. The brand wants to grow its sustainable operations in Australia and India soon. The positive coverage surrounding the launch of Gentari has helped contribute to PETRONAS’ increase in B.S.I. (Brand Strength Index) score.
Russian Natural Gas Companies Facing Decline
All Russian oil & gas brands included in the ranking have seen significant brand value reductions due to Russia’s invasion of Ukraine and global sanctions placed on Russia. Gazprom (brand value down by 19% to $5.5 billion), Lukoil (brand value down by 17% to $5.1 billion), and Rosneft (brand value down by 18% to $2.8 billion) are all in decline due to pessimistic financial forecasts.
Russian companies have lost much of their European business as European countries are openly supporting Ukraine. Reduced demand for Russian Oil & Gas has also caused a boost in trusted suppliers stationed outside Russia, such as in the Middle East. Increased Asian demand has slightly mitigated the decline in Russia’s oil & gas brands. However, Russian brands face an uphill battle in re-gaining global business while the conflict in Ukraine is ongoing.
Conclusion
While fossil fuels aren’t the long-term future, natural gas is still indispensable for meeting the world’s energy needs, and these companies are self-confident to help supply what we demand.
Whether you’re looking to invest in the natural gas sector or want to understand the major players, this list provides a great starting point.
The companies on this list are industry leaders for a reason as they have strong financials and are growing production while innovative new projects are on the horizon.
The natural gas landscape may change, but these natural gas companies have shown they have what it takes to adapt and thrive.
These names are worth watching as they are expected to progress significantly in the upcoming years.