BAKU, Azerbaijan, February 14. The demand for LNG on a global scale is projected to increase by over 50 percent by 2040, Shell said in its latest outlook, Trend reports.
In 2023, the global trade volume of LNG reached 404 million tons, showing an increase from 397 million tonnes in 2022. The growth was limited by tight supplies of LNG, which sustained prices and kept price volatility above historical averages, Shell noted.
According to the forecast, the worldwide LNG market is projected to sustain growth into the 2040s, primarily fueled by China's industrial decarbonization efforts and increasing demand in other Asian nations. As the latest industry estimates, LNG demand is anticipated to reach approximately 625-685 million tons per year in 2040.
Meanwhile, the demand for natural gas has reached its peak in certain regions, and on a global scale, it is expected to reach its maximum after 2040, the company added.
"China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas. With China’s coal-based steel sector accounting for more emissions than the total emissions of the UK, Germany, and Türkiye combined, gas has an essential role to play in tackling one of the world’s biggest sources of carbon emissions and local air pollution," said Steve Hill, Executive Vice President for Shell Energy.