Shell forecasts global demand for LNG to grow by 50% by 2040 – Kommersant
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Global demand for liquefied natural gas (LNG) will reach record levels in 2040, according to Shell’s annual market review (.pdf). Shell estimates that in 16 years, global demand will increase by 50% and range from 625 million to 685 million tons per year.
In 2023, the volume of global LNG trade increased by 1.8% compared to 2022, from 397 million tons to 404 million tons. Shell’s report notes that limited LNG supplies are holding back growth, keeping prices and volatility above historical averages.
By 2040, global demand for liquefied natural gas will grow by more than 50%, according to a Shell report, as industry switches from coal to gas in China. In addition, countries in South and Southeast Asia are using more LNG to support their economic growth.
“Over the next decade, declining domestic gas production in parts of South and Southeast Asia could lead to a surge in demand for LNG as these countries’ economies increasingly need the fuel for gas-fired power plants or industry. However, the countries of South and Southeast Asia will require significant investments in gas import infrastructure,” Shell emphasized.
At the same time, Shell indicated that gas demand has already reached its peak in a number of regions of the world, for example, in Europe and Japan, the maximum demand for gas was observed in the 2010s. In the USA and Argentina, peak gas consumption will be reached in the 2030s, in Russia, India, China, Indonesia, Nigeria and South Africa – after 2040.
Read more about the global gas market in the Kommersant article. “Gas at cycle change”.
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