Shell expects LNG demand to soar 65% by 2050 after stalling in 2026
Shell PLC on Tuesday said global demand for liquefied natural gas is expected to increase to nearly 700 million tonnes a year by 2050, an increase of around 65% from 2025, as countries prioritise "flexible and reliable" energy security.
According to the London-based oil major's LNG outlook for 2026, a total of 422 million tonnes of LNG was traded in 2025 and this was expected to increase significantly in 2026.
However, severe disruption to shipping through the Strait of Hormuz has shut in around one fifth of the world's monthly LNG supply since the conflict started, pushing up prices on the spot market and adversely affecting some countries in Asia.
The ramp up of new liquefaction facilities in North America, improved performance at existing plants and slower Asian imports of LNG have partially offset the impact of reduced supply from the Middle East.
As a result, total LNG trade in 2026 could be similar to last year if shipping through the Strait of Hormuz returns to normal this summer, before returning to growth in 2027, Shell forecast.
About 180 million tonnes of annual new supply is forecast to enter the market by 2030, improving the availability and affordability of gas and opening up demand in new markets, Shell added.
LNG growth is then expected to be strong to meet "rapidly growing" demand for energy with lower emissions than coal, while data centres are emerging as a new source of power demand, the report noted.
Emerging segments of demand are also growing rapidly, Shell said, noting forecasts suggest LNG bunkering will grow seven-fold to 27 million tonnes by 2035, more than the amount of LNG imported by India last year.
To meet the growing demand, "significant" additional investment will be needed in new LNG liquefaction plants through the 2030s and 2040s, the Shell report said, with around 200 million tonnes a year of new supply needed, in addition to projects already under construction.
Shares in Shell were down 0.2% at 2,896.00 pence each in London on Tuesday morning.
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