Shell (LSE:SHEL) said on Monday that worldwide demand for liquefied natural gas (LNG) could increase substantially over the coming decades, rising from around 422 million tonnes per year in 2025 to between 610 million and 780 million tonnes annually by 2050.
According to the company, this would represent an expansion of roughly 45% to 85% over the next quarter century.
Shell noted that new investment in LNG supply capacity will likely be needed during the 2030s and 2040s to ensure global demand can be met, even under the more conservative end of its long-term outlook.
The energy group added that its existing LNG operations, as well as projects currently under development, are positioned competitively within the lower half of the industry’s cost structure.
Shell also said Asia will play a central role in driving LNG demand growth through 2040, accounting for about 70% of the expected increase in consumption.
Currently, LNG represents about 14% of global natural gas supply, which equates to just over 3% of total primary energy consumption. Shell expects LNG’s share of primary energy to exceed 4% by 2040 and remain around that level through mid-century.
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