Shell Forecasts 65% Surge in Global LNG Demand by 2050 as Asia Drives Growth

Post by : Saif

Global demand for liquefied natural gas (LNG) is expected to increase by around 65% by 2050, according to Shell's latest 2026 LNG Outlook, as countries across Asia accelerate their transition away from coal and rising electricity demand from data centres fuels long-term energy consumption.

The global energy company projects that LNG demand will reach nearly 700 million metric tons per year by 2050, compared with global LNG trade of 422 million metric tons in 2025. Shell said the long-term outlook remains strong despite recent geopolitical disruptions affecting energy markets.

Asia Expected to Lead Future LNG Growth

Shell expects South and Southeast Asia to become the world's fastest-growing LNG markets over the coming decades.

According to the report, these regions are projected to account for around 40% of global LNG imports by 2050 as governments seek cleaner alternatives to coal while meeting rapidly increasing electricity demand driven by industrialisation, urbanisation, and population growth.

In developed Asian economies such as Japan, expanding data centres are also expected to become a significant source of electricity demand, further supporting LNG consumption.

Strait of Hormuz Disruption Slows LNG Trade in 2026

While global LNG trade had been expected to grow in 2026, Shell said severe shipping disruptions through the Strait of Hormuz following the Middle East conflict have temporarily affected supply.

Around one-fifth of global monthly LNG shipments have been impacted because of restrictions on maritime traffic through the strategic waterway.

As a result, Shell expects global LNG trade in 2026 to remain broadly similar to 2025 levels, provided shipping conditions return to normal during the second half of the year. Growth is expected to resume in 2027.

Market Shows Greater Resilience

Despite supply disruptions, Shell said the global LNG market has demonstrated stronger resilience than during previous energy crises.

The company credited improved market stability to expanding LNG export capacity in North America, higher production at existing liquefaction plants, and relatively slower LNG imports across parts of Asia.

Although Asian spot LNG prices briefly climbed above $20 per million British thermal units (MMBtu) during the Middle East conflict, prices remained significantly below the levels seen after Russia's invasion of Ukraine in 2022.

New Investments Needed to Meet Future Demand

Shell estimates that approximately 180 million metric tons per year of new LNG supply will enter the market by 2030, improving availability and affordability.

However, the company warned that additional investment will still be required throughout the 2030s and 2040s to keep pace with growing global demand.

Shell estimates that nearly 200 million metric tons per year of additional liquefaction capacity will be needed beyond projects already under construction.

The company said LNG will continue playing a vital role in supporting global energy security, balancing renewable energy generation, and helping countries reduce carbon emissions by replacing coal in power generation.

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