Global LNG demand to rise 60% by 2040, led by Asia

According to the "Shell 2025 LNG Outlook" report, global LNG trade is expected to increase by 2 million tonnes in 2024, reaching 407 million tonnes, the lowest annual increase in the last 10 years, due to limited new supply capacity.

However, global LNG demand is forecast to rise sharply to between 630 million and 718 million tonnes per year by 2040. This is above Shell’s LNG demand forecast of 625-685 million tonnes last year.

While economic growth in Asia is expected to be the driving force behind the 60 percent increase expected in global LNG demand by 2040, increasing energy demand due to artificial intelligence and efforts to reduce emissions in heavy industry and transportation are also expected to increase LNG consumption.

It is estimated that over 170 million tons of new LNG supply capacity will come online worldwide by 2030, and this capacity will help meet the growing demand, especially in Asia.

It is anticipated that a significant portion of the growth in LNG supply will come from Qatar and the US, with the US reaching an annual capacity of 180 million tons by 2030, accounting for one-third of global supply and maintaining its position as the world's largest LNG exporter.

Europe is expected to continue to need LNG until the 2030s to balance the increasing share of renewable energy sources and ensure energy security.