Shell expected in a report on Wednesday that global demand for liquefied natural gas will rise by more than 50% by 2040, as China and countries in Southeast Asia increase their use of liquefied gas to support their economic growth.
Shell said in its annual LNG forecast for 2024 that global LNG trade rose 1.8% to 404 million tons in 2023 from 397 million in 2022.
She added that supply shortages are keeping prices and price fluctuations above the historical average and restricting economic growth.
The report indicated that although demand for natural gas has reached its peak in some regions, it continues to rise globally, and is expected to reach between 625 and 685 million tons annually in 2040, according to the latest sector estimates.
China’s dominance
“China is likely to dominate LNG demand growth this decade, as its industry seeks to reduce carbon emissions by switching from coal to gas,” said Steve Hill, executive vice president of Shell Energy.
“Because China’s coal-based steel sector is responsible for emissions exceeding the total emissions of the United Kingdom, Germany and Turkey combined, gas plays an essential role in addressing one of the largest sources of carbon emissions and local air pollution in the world,” he added.
