Shell projects a 50% increase in global liquefied natural gas demand by 2040

February 15, 2024

China’s ongoing attempts to reduce its coal use are expected to drive a more than 50% increase in the global demand for liquefied natural gas by 2040, according to an estimate made by the British oil giant Shell on Wednesday.

“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,” Shell said in a report.

Global LNG demand would grow beyond that date, “driven by industrial demand in China and economic development in South Asia and South-east Asia”, the energy major added.

Steve Hill, executive vice president for Shell Energy, said China was likely to dominate LNG demand growth in the current decade “as its industry seeks to cut carbon emissions by switching from coal to gas”.

Although LNG emits fewer greenhouse emissions than coal, it still contributes to global warming. LNG is marketed by businesses and a lot of governments as a “bridge fuel” between coal and renewable energy sources like solar and wind power.


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