Shell Projects a 50% Increase in Global LNG Demand by 2040
According to Shell, the rise in South and Southeast Asian economies, as well as industrial demand in China, will boost the worldwide market for liquefied natural gas beyond 2040.
The biggest oil and gas company in Britain announced on Wednesday that it projects a more than 50% increase in global gas demand by 2040 as the Chinese industrial sector switches from coal to gas and as more countries in South and Southeast Asia adopt LNG to boost their economies.
According to Shell Energy Executive Vice President Steve Hill, “China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas.”
The amount of LNG traded globally increased from 397 million metric tons to 404 million tons last year as limited supply, partially due to a shortage in Russian supply, prevented further rise.
According to Shell, demand is expected to increase globally and reach between 625 million–685 million annual tons in 2040, even though it has already peaked in some locations.
“As these economies increasingly need fuel for gas-fired power plants or industry, declining domestic gas production in parts of South Asia and South-east Asia could drive a surge in demand for LNG over the following decade,” the report stated.
