Oil giant Shell is projecting demand for liquefied natural gas (LNG) globally to surge by over 50% by 2040.
The increase will driven by the accelerating transition from coal to gas in industries across China, as well as the growing reliance on LNG in southern and south-eastern Asian countries 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 tons 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 tons to 685 million tons a year in 2040.
The Shell LNG Outlook 2024 stated 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.
