Global demand for liquefied natural gas is forecast to surge 60 per cent by 2040 due to faster economic growth in Asia and the race to decarbonise industry, Shell has said.
The energy major’s widely followed annual outlook on the super-chilled fuel is 10 percentage points higher than what was predicted last year for the same period, reflecting stronger demand from India and China.
“The global trade in LNG is set to rise significantly by 2040, driven by Asian economic growth, the need to decarbonise heavy industry and transport and the emerging growth in the energy-intense tech sector,” the company said.
China, the world’s largest LNG importer, was “significantly increasing” its import capacity in order to provide piped gas connections for 150mn people by 2030, while India was improving its infrastructure with the aim of connecting 30mn people over the next five years, Shell said.
Global demand in LNG will increase to 630mn-718mn tonnes by 2040, from 407mn tonnes last year, Shell said. Last year’s outlook pegged the demand at 625mn-685mn tonnes. More than 170mn tonnes of new LNG supply is expected to come online by 2030 to meet the rising demand, Shell added.
Shell and its competitors are keen to position natural gas and LNG as a cleaner alternative to coal and a transition fuel for the world to decarbonise, despite natural gas releasing substantial amounts of carbon dioxide when burnt.