New Delhi: Global demand for liquefied natural gas (LNG) is estimated to rise by more than 50 per cent by 2040, with industrial coal-to-gas switching gathering pace in China and South Asian and Southeast Asian countries using more LNG to support their economic growth, said 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. Demand for natural gas has already peaked in some regions but continues to rise globally, with LNG demand expected to reach around 625-685 million tonnes a year in 2040, according to the latest industry estimates.
Over the following decade, declining domestic gas production in parts of South Asia and Southeast Asia could drive a surge in demand for LNG as these economies increasingly need fuel for gas-fired power plants or industry. However, countries in South Asia and Southeast Asia would need significant investments in gas import infrastructure.
Per the Shell LNG Outlook 2024, gas complements wind and solar power in countries with high levels of renewables in their power generation mix, providing short-term flexibility and long-term security of supply.
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