By Christian Moess Laursen
Shell said it expects global demand for liquefied natural gas to grow beyond 2040, driven by industrial demand in China and economic development in South Asia and Southeast Asia.
The British oil-and-gas major said Wednesday it estimates the global demand for the gas to rise by more than 50% by 2040 as the Chinese industrial sector pivots from coal to gas, and South Asian and Southeast Asian countries use more LNG to support their economic growth.
“China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas,” Executive Vice President for Shell Energy Steve Hill said.
Global trade in LNG grew to 404 million metric tons last year from 397 million tons as tight supply, partly on the lack of Russian supply, halted further growth.
While demand in some regions has already peaked, it is set to rise globally and to reach around 625 million-685 million yearly tons in 2040, Shell said.
“Over the following decade, declining domestic gas production in parts of South Asia and South-east Asia could drive a surge in demand for LNG as these economies increasingly need fuel for gas-fired power plants or industry,” it said.
Write to Christian Moess Laursen at christian.moess@wsj.com
