Natural gas touted as the clean fuel of 21st century is fast emerging as a major energy source all over the world. Yet another fossil fuel and found often found in oil fields and coal beds natural gas would contribute around 26% of global energy consumption by 2030. According to estimates natural gas consumption would increase from 95 trillion cubic feet in 2003 to 182 trillion cubic feet in 2030.

Total natural gas reserves in the world are estimated at 6,112 trillion cubic feet as on January 2006. Nearly three quarter of the total global natural gas reserves are located in the West Asian and Eurasia regions. Iran, Qatar and Russia together accounts for nearly 58% of global natural gas reserve. Demand for natural gas growing at rapid clip during the past decade is expected to gather further momentum due to high price of oil as well as environmental concerns. Electrical and industrial sectors are two leading consumers of natural gas in the world. Developed countries led by U.S. are major consumers of natural gas at present. However, China and India are fast emerging as key players in natural gas demand.

Natural gas is commercially produced from oil fields and natural gas fields. Gas produced from oil wells is called casinghead gas or associated gas. The largest two natural gas fields are probably South Pars Gas Field in Iran and Urengoy gas field in Russia, with reserves on the order of 1013 m³. See also List of natural gas fields. Qatar also has 25 trillion cubic meters of natural gas (5% of the world's proven supply), enough to last 250 years at current production levels.

China and India are tow major countries in which natural gas consumption is set register significant rise in coming years. In India at present natural gas is a minor component in overall energy mix with a share of 7%. However, natural gas consumption is set to have annual growth rate of 5.9% in India during the next 25 years. India is having limited natural gas reserves and nearly 40% of its demand would be met by imports.