FX.co ★ Shell Expects More Than 50% Surge In Global LNG Demand By 2040

The global demand for liquefied natural gas (LNG) is projected to rise by over 50% by 2040. This surge is largely due to the rapid shift from coal to gas in various industries throughout China. Additionally, the increasing dependence on LNG in South Asian and Southeast Asian countries to power their growing economies also contributes to this rise, as stated in Shell's LNG Outlook for 2024.

Shell reports that the global trade in LNG reached 404 million tonnes in 2023, which is an increase from the 397 million tonnes recorded in 2022. While the demand for natural gas has already peaked in certain regions, it continues to climb on a global scale, with expectations running high that the demand for LNG will hit approximately 625 million to 685 million tonnes per year by 2040.

According to the Shell LNG Outlook 2024, gas goes hand in hand with wind and solar power in countries that have high levels of renewable energy in their power generation portfolio. Gas offers both short-term flexibility and long-term supply security.