Shell expects global demand for LNG to rise by 50%

Shell expected in a report on Wednesday that global demand for liquefied natural gas would rise by more than 50% by 2040, as China and countries in South and Southeast Asia increase their use of liquefied natural gas to support their economic growth.

According to Reuters, Shell said in its annual LNG forecast for 2024 that global LNG trade rose 1.8 percent to 404 million tons in 2023 from 397 million tons in 2022, adding that supply shortages keep prices and price fluctuations above historical averages and restrict economic growth.

The report added that although demand for natural gas has peaked in some regions, it continues to rise globally, and is expected to reach about 625-685 million tons annually in 2040 according to the latest sector estimates.

“China is likely to dominate LNG demand growth this decade, as its industry seeks to reduce carbon emissions by switching from coal to gas,” said Steve Hill, executive vice president of Shell Energy.

He continued, “Because China’s coal-based steel sector is responsible for emissions exceeding the total emissions of the United Kingdom, Germany, and Turkey combined, gas plays an essential role in addressing one of the largest sources of carbon emissions and local air pollution in the world.”