Hormuz Disruptions to Delay LNG Growth, Asia to Drive Demand Surge

Global liquefied natural gas (LNG) trade may remain flat in 2026 due to ongoing disruptions in the Strait of Hormuz, according to Shell's annual LNG outlook. The conflict has resulted in around one-fifth of global monthly LNG supply being shut in since its beginning.

The energy major expects growth to resume in 2027 as shipping traffic returns to normal. Despite current disruptions, Shell predicts that global LNG demand will rise by around 65% by 2050, reaching nearly 700 million metric tons per year.

This increase is driven largely by Asia, where countries are seeking lower-emission alternatives to coal and data centres are boosting power demand. South and Southeast Asia are expected to account for around 40% of global LNG imports by 2050 as domestic gas production declines in emerging markets.