Shell Sees LNG Demand Surge Through 2050s

Shell, one of the world's largest energy companies, has released its LNG (liquefied natural gas) outlook. The company expects global demand for LNG to increase significantly over the next few decades.

In a 28-page document, Shell stated that LNG is the fastest-growing energy source after non-hydro renewables, making up more than half of overall natural gas demand growth by 2040. This growth is driven primarily by Asia, which accounts for 70% of the increase in global LNG demand.

Shell also notes that despite a record year for European imports in response to the Russia-Ukraine war, Asia is expected to remain the center of global economic growth at least until the middle of the century, driving growth in underlying energy and natural gas demand. The company forecasts that global LNG demand will increase from 422 million tonnes per year in 2025 to between 650-710 million tonnes by 2040, a 54-68% increase.

Shell's outlook also extends to 2050, with predicted LNG demand ranging from 610-780 million tonnes. The company emphasizes that LNG is a stabilizing force in the energy system due to its versatility, flexibility, and reliability.