Uses of Natural Gas: What Is It Used For?

How is natural gas used?

In the Untied States, most natural gas is used for heating homes (as well as heating water and cooking) and generating electricity.

Around 70 million households or about 3 out of every 4 households in the U.S. are heated with natural gas
Texas homes are less likely to utilize natural gas heat at around 35% of households
In 2022, natural gas fueled 39% of power generation in the United States
Similar to the entire country, 40% of electricity generated in Texas comes from natural gas power plants

Natural gas energy has several uses that make it a valuable resource in various sectors, including:

Natural gas is used to generate electricity

Natural gas is a fossil fuel that serves as a key energy source for generating electricity. In power plants, it is burned to produce heat, which in turn is used to spin turbines, thereby generating electricity.

These turbines, powered by the combustion of natural gas, convert thermal energy into mechanical energy and then into electrical energy. Natural gas power plants stand out for their high efficiency and relatively low emissions when compared to power plants that rely on other fossil fuels. Natural gas is not a renewable energy source.

As a result, they play a crucial role in supplying electricity to residential areas, commercial establishments, and industrial facilities, contributing significantly to meeting energy demands.

How is natural gas used at home?

While electricity is the most commonly utilized power source in the nation, natural gas is commonly used across the United States for the following purposes:

Heating
Cooking with gas stoves and ovens
Fireplaces
BBQ pits and grills
Clothes drying appliances

Industrial uses of natural gas

Natural gas plays a vital role in heating for both homes and industries. Industrially, it provides the high-temperature heat needed for:

Manufacturing processes of glass, cement, and other products
Food production
Warming expansive areas such as warehouses and factories

Natural gas also contains hydrocarbons that can be used as raw materials for producing various chemicals and materials and serve as a fundamental resource for the production of:

Plastics
Fertilizers
Pharmaceuticals
Other essential products

Natural gas as an alternative fuel for transportation

The use of natural gas in transportation not only supports energy independence by utilizing domestically produced fuels but also contributes to environmental sustainability through reduced emissions. Despite these advantages, natural gas accounted for about 5% of the U.S. transportation sector’s energy use in 2022, with the majority still being petroleum products.

However, natural gas is increasingly used in government and private vehicle fleets, including cars, buses, and trucks, for its benefits of lower emissions and fuel cost savings

Natural gas is utilized in the transportation sector as an alternative fuel, offering a cleaner, more economical option compared to traditional petroleum-based fuels. It is primarily used in two forms:

Compressed natural gas (CNG)
Liquefied natural gas (LNG)

Both of these forms of natural gas are domestically produced and commercially available. They serve as alternative fuels under the Energy Policy Act of 1992 and are noted for their lower prices and reduced environmental impact compared to coal and oil.

Compressed natural gas

CNG is made by compressing natural gas to less than 1% of its volume at standard atmospheric pressure, allowing it to be stored onboard a vehicle in tanks at high pressure. It’s suitable for light-, medium-, and heavy-duty vehicles, offering comparable fuel economy to conventional gasoline vehicles on a gallon-equivalent basis.

Liquid natural gas

LNG, on the other hand, involves cooling natural gas to -260°F, turning it into a liquid which allows for denser energy storage. This makes LNG especially suitable for trucks that require longer ranges, though its higher production cost and the need for expensive cryogenic tanks limit its use to specific applications.

Written by Graham Lumley

Graham Lumley is the Growth Product Manager at BKV Energy, a retail electricity provider in Texas' deregulated market, where he has worked since 2023. He analyzes customer usage and billing data, helps develop BKV's fixed-rate plans, and creates tools to simplify Texas electricity shopping. He has written over 200 articles on Texas electricity rates, delivery charges, plan types, energy generation, and more to help Texans understand their bills and pay less. With over 10 years of experience in consumer products, marketing, and energy, he explains the Texas electricity market in plain language.