GLNG: Shell bullish on LNG, predicts 50% global rise by 2040

Oil and gas supermajor Shell expects global demand for LNG to soar by over 50% by 2040, the company predicted in its 2024 annual LNG market outlook published on February 14.

Expanding demand in Asia amid steady economic growth in the region will be the key driver, the company said.

Shell envisions that global demand will climb to between 625-685mn tonnes per year in 2040, from its current level of 404mn tpy in 2023. Last year saw a slight rise from 397mn tpy in 2022.

Nevertheless, the forecast of between 625-685mn tonnes in 2040 does represent a slight reduction from Shell’s prediction in 2023 that global LNG demand would rise to 700mn tpy by 2040, as the market remains "structurally tight" and growth is capped by prices and price volatility at levels higher than historic averages.