The British hydrocarbon giant Shell announced on Tuesday that global demand for liquefied natural gas (LNG) is set to increase more than expected over the next fifteen years, driven by economic growth in Asia and maritime transport.
Global demand “is expected to grow by approximately 60% by 2040, largely thanks to economic growth in Asia, and also the reduction of emissions in heavy industry and transport.” Shell also noted “the impact of energy-hungry artificial intelligence” in pushing up demand.
Shell released its “LNG Outlook” for 2025 on Tuesday. The company had forecast in last year’s annual report a rise of “more than 50% by 2040.”
“The world will need more gas for electricity generation, heating and cooling, industry, and transport,” said a Shell executive. The company noted that China, facing growing domestic demand, “is significantly increasing its LNG import capacity,” while India “is also advancing in the construction of natural gas infrastructure.”
Demand will also be boosted by a growing number of ships running on LNG, which “is becoming a cost-effective fuel for maritime and road transport,” helping “to reduce emissions,” added Shell.
LNG is often portrayed as a “transition” energy to replace more polluting sources like coal. However, its environmental record is marred by energy-intensive production and frequent methane leaks into the atmosphere.
