By ABUBAKAR YUNUS
Shell Plc says global demand for liquefied natural gas (LNG) is expected to increase by about 65 percent by 2050.
In its 2026 LNG Outlook report released on Tuesday, Shell projected that global LNG demand would reach nearly 700 million metric tonnes annually by 2050, driven largely by growing energy demand across Asia and increased electricity consumption from data centres.
The energy company said global LNG trade reached 422 million metric tonnes in 2025 and is expected to expand further this year.
But Shell said disruptions to shipping through the Strait of Hormuz following the Middle East conflict have temporarily halted about one-fifth of global monthly LNG supply.
According to the oil and gas giant, global LNG trade in 2026 could remain at levels similar to last year if shipping through the strategic waterway returns to normal during the summer, before growth resumes in 2027.
“The conflict created a system-wide shock with disruption cascading across all segments of the economy, but the LNG industry has proved resilient and able to adapt to changing market conditions,” Cederic Cremers, Shell’s president of integrated gas, said.
Shell said the impact of the disruption has been cushioned by expanded LNG supply, additional regasification infrastructure, stronger output from existing plants and slower imports across Asia.
The company said the ramp-up of new liquefaction projects in North America has also helped offset reduced supplies from the Middle East.
Shell said Asian LNG imports fell by nearly 4 percent to 127.7 million metric tonnes in the first half of 2026 compared with the same period last year.
The report noted that although Asian spot LNG prices climbed above $20 per million British thermal units during the peak of the Middle East crisis, they remained below the levels recorded after Russia’s invasion of Ukraine in 2022.
Looking ahead, Shell projected that about 180 million metric tonnes of new LNG supply would enter the global market by 2030, improving gas availability and affordability.
The company said south and south-east Asia would account for about 40 percent of global LNG imports by 2050 as countries increasingly replace coal with lower-emission fuels to meet rising electricity demand.
The British multinational said LNG would continue to play an important role in Europe’s energy security while also supporting power systems as domestic gas production declines and renewable energy generation expands.
“While more investment in both supply and demand infrastructure is needed, the long-term outlook remains strong and LNG will continue to be a stabilising force in the global energy system,” Cremers said.
Shell the said meeting projected demand would require significant investment in LNG export projects through the 2030s and 2040s, with around 200 million metric tonnes of additional annual supply needed beyond projects already under construction.
