Shell Forecasts Over 50% Surge in Global LNG Demand by 2040

In a report unveiled on Wednesday, Shell projected a significant surge in global liquefied natural gas (LNG) demand, expecting it to soar by more than 50 percent by 2040. This uptick is anticipated as countries in South and Southeast Asia, along with China, intensify their adoption of LNG to bolster economic expansion.

According to Shell’s annual LNG forecast for 2024, global LNG trade observed a 1.8 percent increase, reaching 404 million tons in 2023 from 397 million tons in 2022. However, supply shortages persist, keeping prices and fluctuations above historical averages and constraining economic growth.

The report highlighted that while demand for natural gas has peaked in certain regions, it continues to climb globally. Projections suggest it will reach approximately 625-685 million tons annually by 2040, according to the latest sector estimates.

Steve Hill, Shell Energy’s executive vice president, emphasized, “China is poised to lead LNG demand growth in the coming decade as its industries pivot towards reducing carbon emissions by transitioning from coal to gas.”

He further elaborated, stating, “Given that China’s coal-dependent steel sector alone generates emissions surpassing the total emissions of the United Kingdom, Germany, and Turkey combined, gas emerges as a critical component in addressing one of the largest sources of carbon emissions and local air pollution worldwide.”