Shell Forecasts 65% Surge in Global LNG Demand by 2050

Shell, the world's largest liquefied natural gas (LNG) trader, projects a 65% increase in global LNG demand by 2050 from 2025 levels. This significant growth is primarily attributed to rising natural gas consumption in South and Southeast Asia, according to the company's annual LNG Outlook 2026 released on Tuesday. The report indicates that global LNG trade reached 422 million tons last year. While earlier forecasts, including Shell's own, anticipated a near-term jump in trade for 2026, current geopolitical tensions have introduced volatility. Specifically, disruptions stemming from the Middle East conflict led to a temporary shutdown of approximately one-fifth of the world's monthly LNG supply. This supply shock consequently drove up spot LNG prices, influencing market dynamics in the short term. Despite these immediate challenges, the long-term outlook remains robust, driven by industrial and power generation needs in emerging economies. The projected demand surge underscores the ongoing role of natural gas, in its liquefied form, as a crucial energy source during the global energy transition. It also highlights the strategic importance of reliable supply chains and diverse sourcing for consuming nations. Shell's analysis suggests that while renewable energy sources are expanding, natural gas will continue to play a pivotal role in meeting baseload power demand and supporting intermittency from renewables. The regional concentration of demand growth in Asia further emphasizes the shifting geographical focus of global energy consumption and trade routes, potentially necessitating new infrastructure investments in both liquefaction and regasification terminals.