Shell's annual LNG report forecasts strong long-term demand growth driven by Asia, while the Strait of Hormuz conflict temporarily disrupted supply and lifted spot prices in 2026.
MONTREAL (Oil Monster): Global demand for liquefied natural gas (LNG) is projected to rise by 65% by 2050, reaching nearly 700 million tonnes annually, according to Shell's LNG Outlook 2026.
Global LNG trade totaled 422 million tonnes in 2025 and was expected to increase further in 2026. However, the conflict in the Middle East severely disrupted shipping through the Strait of Hormuz, temporarily affecting LNG supply. The supply disruption pushed spot LNG prices higher.
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Shell expects global LNG trade in 2026 to remain broadly in line with 2025 levels if shipping through the Strait of Hormuz normalizes during the summer. The company anticipates stronger growth from 2027 onward.
Shell forecasts that approximately 180 million tonnes of new annual LNG supply capacity will come online by 2030. South and Southeast Asia are expected to account for nearly 40% of global LNG imports by 2050, mainly driven by rising energy demand in the region.
Looking beyond 2030, Shell estimates that an additional 200 million tonnes per year of new LNG liquefaction capacity will be required to meet rising global demand through the 2040s.
According to Shell's LNG Outlook 2026, global LNG demand is projected to rise by 65%, reaching nearly 700 million tonnes per year by 2050.
Global LNG trade totaled 422 million tonnes in 2025, according to Shell's report.
The conflict in the Middle East severely disrupted shipping through the Strait of Hormuz, temporarily reducing LNG supply and pushing spot LNG prices higher. Increased North American liquefaction capacity and improved output from existing facilities helped offset the losses.
South and Southeast Asia are expected to account for nearly 40% of global LNG imports by 2050, driven primarily by rising energy demand in those regions.
Shell estimates that an additional 200 million tonnes per year of new LNG liquefaction capacity will be required to meet rising global demand through the 2040s, on top of the roughly 180 million tonnes per year of capacity expected to come online by 2030.
