Global demand for liquefied natural gas (LNG) is anticipated to surge by more than 50% by 2040.
That’s according to Shell’s LNG Outlook 2024 report, which attributes this growth to China‘s shift from coal to gas and rising usage in South Asian and Southeast Asian nations to fuel economic expansion.
Despite tight supplies constraining growth and maintaining prices, global LNG trade reached 404 million tonnes in 2023, with estimates projecting a demand of around 625-685 million tonnes annually by 2040.
The report also emphasises the need for significant investments in gas import infrastructure in South Asia and Southeast Asia to meet rising demand.
Steve Hill, Executive Vice President for Shell Energy, said: “China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas.
“With China’s coal-based steel sector accounting for more emissions than the total emissions of the UK, Germany and Turkey combined, gas has an essential role to play in tackling one of the world’s biggest sources of carbon emissions and local air pollution.”
