Shell Lowered LNG Growth Outlook

SEATTLE (Oil Monster): Shell said that liquefied natural gas (LNG) demand by 2040s is likely to remain slightly lower than the previous forecast. In its global LNG outlook report released yesterday, the company noted that the demand is expected to touch 625-685 million tonnes per annum by 2040, as compared with the previous estimate of around 700 million tonnes.

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According to Shell, the global natural gas demand peaked in the 2010s, mainly driven by increased demand in regions such as Japan, Europe and Australia. The demand growth will be led by the North American region in 2030s, while rest of the world will drive growth by 2040s.

The global trade in LNG rose marginally from 397 million tonnes in 2022 to 404 million tonnes in 2023. The projected demand in 2040 represents more than 50% jump from the 2023 levels. The Chinese industrial decarbonisation and robust demand from other Asian counties will trigger demand growth. Meantime, the domestic gas production in South-East Asia is set to register decline, Shell noted.

The supplies from North America are expected to double by 2030, with the U.S. playing a pivotal role in meeting the increased global demand. Europe too will remain as a key structural player in LNG market, Shell said.