Shell Projects LNG Demand to Surge Up to 85% by 2050

Shell Forecasts Major LNG Demand Growth by 2050

Energy company Shell reported that global demand for liquefied natural gas (LNG) is projected to increase significantly, rising by 45% to 85% between 2025 and 2050. This forecast underscores the expanding role of LNG in the future global energy landscape.

Global Demand Overview

According to the company's analysis, LNG demand is expected to grow from 422 million tonnes per annum in 2025 to a range of 610 to 780 million tonnes per annum by 2050. Shell identifies Asia as the primary driver for this expansion, attributing 70% of the demand growth through 2040 to the region.

Economic and Market Impact

To meet this rising demand, Shell stated that further investment in supply infrastructure will be required in the 2030s and 2040s. The company noted its existing LNG plants are competitively positioned in the bottom half of the industry's cost curve, readying for future market needs.

Future Outlook for LNG

The long-term outlook for LNG remains robust, with its share of the primary energy supply expected to increase to over 4% by 2040. Market participants will be monitoring investment trends and supply developments to ensure capacity can meet the sustained, Asia-led demand.

FAQ

Q: What is the projected increase in LNG demand by 2050?
A: Shell forecasts a 45% to 85% increase in global LNG demand by 2050 compared to 2025 levels.

Q: Which region will drive the most growth in LNG demand?
A: Asia is expected to account for 70% of the growth in LNG demand up to the year 2040.

Source: Investing.com