Global LNG demand to grow 50% by 2050

This will be driven by the increasing demand in China, South Asia, and Southeast Asia.

The global demand for liquefied natural gas (LNG) is expected to grow by over 50% by 2050, boosted by the robust rise of demand in China and the development in South Asia and Southeast Asia.

In a report, Shell said China’s initiatives on transitioning from coal to gas and economic policies in other Asian countries have kept LNG adoption at pace.

With the increase of developments in LNG adoption, China is estimated to lead the energy industry, especially as the market aims to cut carbon emissions in every sector.

The decline in domestic gas production in South Asia and Southeast Asia opened the opportunity for increased LNG demand as markets in the region require gas-fired power plants. However, significant investments would be substantial in gas import infrastructure.

Currently, global trade in LNG has attained 404 million tonnes in 2023, compared to 397 million tonnes in 2022. Demand is anticipated to peak at 625-685 million tonnes a year by 2040.

ALSO READ: JERA, PT PLN unit partner for LNG value chain development

“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,” Steve Hill, Executive Vice President for Shell Energy, said.