Global demand for liquefied natural gas is estimated to rise by around 60% by 2040, driven largely by economic growth in Asia, AI impact and efforts to cut emissions in heavy industries and transportation, Shell said in an annual report on Tuesday.
Demand for natural gas continues to rise globally as the world transitions to cleaner fuels. Industry forecasts LNG demand to reach between 630 million and 718 million metric tons a year by 2040, Shell said in its 2025 annual LNG outlook.
The latest view from the world's largest LNG trader is higher than last year's forecast, which pegged global LNG demand in 2040 at 625 million to 685 million tons per year.
"Upgraded forecasts show that the world will need more gas for power generation, heating and cooling, industry and transport to meet development and decarbonisation goals," said Tom Summers, Shell's senior vice president for LNG marketing and trading.
China, the world's top LNG importer, and India are increasing LNG import capacity and gas related infrastructure to meet rising demand, Shell added.
Natural gas imports into China are forecast to rise this year as economic stimulus plans lift industrial demand, although trade tensions with the U.S. may cap growth.
In India, the International Energy Agency expects natural gas consumption to jump 60% between 2023 and 2030, doubling the country's need for LNG imports, as domestic output is expected to grow much more slowly than demand.
To meet rising demand, particularly in Asia, more than 170 million tonnes of new LNG supply is set to be available by 2030, said Shell. The start-up timings of new LNG projects, however, are uncertain.
Significant growth in LNG supply will come from top exporter the United States, potentially reaching 180 million tons a year by 2030 and accounting for a third of global supply, the report said.
In 2024, global LNG trading rose by only 2 million tons to 407 million tons due to constraints on development of new supply, marking the smallest annual increase in the past decade, the report said.
While Asian LNG demand strengthened in the first half of last year with lower prices and hotter weather spurring power generation needs, Europe's imports fell in the first three quarters of 2024 before demand picked up as cold weather led to faster depletion of storage inventories.
Europe's LNG demand is expected to grow in 2025 and beyond.
"Europe will continue to need LNG into the 2030s to balance the growing share of intermittent renewables in its power sector. In the longer term, existing natural gas infrastructure could be used to import bio-LNG or synthetic LNG and be repurposed for the import of green hydrogen," Shell's report said.
A driver has been arrested after ramming into a crowd at a Filipino street festival in Vancouver, leaving several people dead and injured.
President Donald Trump and Ukrainian President Volodymyr Zelenskyy met ahead of Pope Francis' funeral at the Vatican, according to sources.
Indian and Pakistani troops exchanged gunfire for a second consecutive day on Saturday, as relations between the two nuclear-armed neighbors deteriorated following a deadly attack on tourists in India’s Kashmir region.
President Donald Trump has expressed scepticism over Vladimir Putin’s willingness to end the war in Ukraine, suggesting that peace may not be achievable soon, despite earlier comments indicating proximity to a deal.
The Syrian Ministry of Defense on Thursday accused Hezbollah militias of firing artillery shells from Lebanese territory toward Syrian army positions in the al-Qusayr area west of Homs.
A driver has been arrested after ramming into a crowd at a Filipino street festival in Vancouver, leaving several people dead and injured.
France’s prime minister has vowed action after a Muslim worshipper was fatally stabbed in a mosque in what authorities are investigating as a possible Islamophobic crime.
A deadly explosion at Iran’s Bandar Abbas port has left at least 18 dead and over 700 injured, halting operations at one of the country’s most vital trade hubs.
The Kremlin says President Putin confirmed readiness for direct talks with Ukraine during a meeting with Trump’s envoy Steve Witkoff in Moscow.
Australia’s Labor party has promised a free medical advice line and expanded Medicare funding as cost-of-living pressures dominate the election campaign.
China has rolled out the world’s first 10-gigabit (10G) fixed broadband network in Xiong'an New Area, promising ultra-fast speeds and low latency through cutting-edge optical infrastructure.
Pope Francis's relationship with Azerbaijan has evolved significantly over the years, characterized by diplomatic exchanges, promotion of religious tolerance, and peace advocacy in the Caucasus region.
Russia launched a major missile and drone assault on Kyiv overnight on April 24, killing at least twelve people and injuring 90, including children and a pregnant woman, according to Mayor Vitali Klitschko.
China’s pivot away from U.S. liquefied petroleum gas under new tariffs is shaking global energy flows, slashing demand, and fuelling a scramble for alternatives across Asia, with Middle Eastern suppliers and rival buyers seizing the moment.
A deadly attack targeting tourists in India’s Jammu and Kashmir territory has left at least 20 feared dead, marking the deadliest incident against civilians in the region for years, according to security sources.
President Donald Trump on Thursday signed an executive order aimed at boosting the deep-sea mining industry, marking his latest attempt to boost U.S. access to nickel, copper and other critical minerals used widely across the economy.
Uzbekistan and Iran have agreed to establish a Joint Business Council aimed at fostering development of business ties and facilitating the resolution of issues between entrepreneurs from both countries.
Brussels has fined Apple and Meta over €700 million combined, launching its first crackdown under the Digital Markets Act aimed at curbing big tech’s power and boosting competition in the digital economy.
The Trump administration is considering reducing tariffs on Chinese imports, aiming to ease tensions with Beijing as trade negotiations continue, a source familiar with the matter said on Wednesday.
Iran informed China on Wednesday about ongoing nuclear negotiations with the US, expressing a commitment to diplomacy despite past setbacks and urging stronger bilateral cooperation under their 25-year strategic agreement.
A driver has been arrested after ramming into a crowd at a Filipino street festival in Vancouver, leaving several people dead and injured.
France’s prime minister has vowed action after a Muslim worshipper was fatally stabbed in a mosque in what authorities are investigating as a possible Islamophobic crime.
A deadly explosion at Iran’s Bandar Abbas port has left at least 18 dead and over 700 injured, halting operations at one of the country’s most vital trade hubs.
The Kremlin says President Putin confirmed readiness for direct talks with Ukraine during a meeting with Trump’s envoy Steve Witkoff in Moscow.
Australia’s Labor party has promised a free medical advice line and expanded Medicare funding as cost-of-living pressures dominate the election campaign.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment