Shell announced that global demand for liquefied natural gas is estimated to rise by 54-68% by 2040 and 45-85% by 2050 from 422 million metric tons per annum in 2025.

The energy company said LNG demand is expected to increase from 422 MTPA in 2025 to between 650 MTPA and 710 MTPA by 2040, and further to between 610 MTPA and 780 MTPA by 2050.

Shell stated that further investment in supply will be required in the 2030s and 2040s to meet even the lower range of LNG demand forecasts in 2050.

The company said its existing LNG plants and new developments are competitively positioned in the bottom half of the industry cost curve.

LNG demand growth to 2040 will be driven by Asia, which represents 70% of the growth, according to Shell.

The company noted that LNG represents 14% of global natural gas supply, equal to just over 3% of primary energy supply. Shell expects this to increase to over 4% by 2040 and remain around that level in 2050.

Shell said that given the uncertain geopolitical situation and out of consideration for its partners in the Middle East, it has decided not to publish its annual LNG Outlook 2026.

The company stated that while the Middle East conflict has created high levels of volatility in prices, it continues to have a positive LNG outlook over the long term.

Shell said global gas consumption may peak in the 2030s and has peaked in regions such as Europe and Japan, but LNG demand is expected to grow to at least 2040.
Source: Investing.com