Global LNG Demand Predicted to Surge 60% by 2040, Driven by Asia

Shell's annual report highlights rising demand for natural gas, fueled by Asian economic growth and decarbonization goals, but supply challenges persist.

• Shell forecasts global liquefied natural gas (LNG) demand to reach between 630 and 718 million metric tons annually by 2040, a 60% increase from current levels.
• Economic growth in China and India, paired with decarbonization efforts in heavy industries and transportation, are key drivers of rising LNG demand.
• The United States and Qatar are expected to lead LNG supply growth, with the U.S. potentially accounting for a third of global supply by 2030.
• Supply chain bottlenecks, geopolitical tensions, and regulatory hurdles have delayed new LNG projects, creating uncertainty about meeting future demand.
• Europe's LNG demand is projected to grow into the 2030s, supporting intermittent renewable energy and transitioning to lower-carbon alternatives like bio-LNG and green hydrogen.

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