‘50% increase in global LNG demand by 2040’
PHOTO: FILE
Global demand for liquefied natural gas (LNG) is estimated to rise by more than 50% by 2040. This growth is fuelled by industrial coal-to-gas switching in China, as well as South Asia and South-east Asian countries using more LNG to support their economic growth, according to Shell’s LNG Outlook 2024.
Global trade in LNG reached 404 million tonnes in 2023, up from 397 million tonnes in 2022, with tight supplies of LNG constraining growth while maintaining prices and price volatility above historic averages. While demand for natural gas has already peaked in some regions, global demand continues to rise, with LNG demand expected to reach around 625-685 million tonnes a year in 2040, according to the latest industry estimates.
“China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas,” said Steve Hill, Executive Vice President for Shell Energy. “With China’s coal-based steel sector accounting for more emissions than the total emissions of the UK, Germany and Turkey combined, gas has an essential role to play in tackling one of the world’s biggest sources of carbon emissions and local air pollution.”
Notably, over the next decade, declining domestic gas production in parts of South Asia and South-east Asia could drive a surge in demand for LNG.
Published in The Express Tribune, February 15th, 2024.
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