Shell predicts global liquefied natural gas demand will surge 85% by 2050

Investing.com – Shell announced on Monday that global liquefied natural gas demand is expected to grow from 422 million tons/year in 2025 by 54-68% to 2040, and by 45-85% to 2050.

The energy company stated that LNG demand is projected to increase from 422 million tons/year in 2025 to 650-710 million tons/year in 2040, and further grow to 610-780 million tons/year by 2050.

Shell said that to meet the lower end of LNG demand forecasts in 2050, additional supply investments will be needed in the 2030s and 2040s.

The company noted that its existing LNG plants and new development projects have a competitive advantage in the lower half of the industry cost curve.

According to Shell, the growth in LNG demand by 2040 will be driven by Asia, which accounts for 70% of the increase.

The company pointed out that LNG accounts for 14% of the global natural gas supply, which is slightly over 3% of primary energy supply. Shell expects this ratio to exceed 4% by 2040 and remain near that level through 2050.

Shell stated that due to uncertain geopolitical situations and considerations for its Middle Eastern partners, it has decided not to release the annual “LNG Outlook 2026” report.

The company noted that despite price volatility caused by conflicts in the Middle East, it remains optimistic about the long-term prospects for LNG.

Shell indicated that global natural gas consumption may peak in the 2030s, with regions like Europe and Japan already reaching their peaks, but LNG demand is expected to grow at least until 2040.

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