Shell Expects More Than 50% Surge In Global LNG Demand By 2040

(RTTNews) - The demand for liquefied natural gas or LNG globally is projected to surge by over 50% by 2040. The increase is driven by the accelerating transition from coal to gas in industries across China, as well as the growing reliance on LNG in South Asian and Southeast Asian nations to fuel their expanding economies, according to Shell's LNG Outlook 2024.

Shell noted that Global trade in LNG reached 404 million tonnes in 2023, up from 397 million tonnes in 2022. Demand for natural gas has already peaked in some regions but continues to rise globally, with LNG demand expected to reach around 625 million tonnes -685 million tonnes a year in 2040.

The Shell LNG Outlook 2024 showed that gas complements wind and solar power in countries with high levels of renewables in their power generation mix, providing short-term flexibility and long-term security of supply.