Shell anticipates growth in global demand for liquefied natural gas until 2050 despite market disruptions.
The company predicts that long-term demand for liquefied natural gas (LNG) will persist as it remains flexible and reliable, even amidst geopolitical tensions affecting markets.
In a recent report, Shell indicated that LNG consumption could increase by at least 45% by 2050 compared to 2025 levels, estimating annual demand to range between 610 million and 780 million tons by mid-century.
This forecast comes amid disruptions in global gas markets due to the ongoing conflict in the Middle East, impacting shipping routes through the Strait of Hormuz, a crucial thoroughfare for energy exports.
Although the company did not directly comment on the impact of the conflict, reports, including from Bloomberg, noted that Shell has declared a state of force majeure, allowing it to suspend some supplies after operations were halted at the world’s largest LNG export facility in Qatar.
This report updates the company’s annual forecasts, expanding its outlook to 2050, while reaffirming that geopolitical developments could influence market dynamics.
Shell sees Asia as the main driver of global demand growth, as economic momentum in the region continues, while Europe will still rely on LNG despite its energy transition commitments, due to the slow pace of renewable energy project deployment.
Conversely, Shell anticipates a supply surplus in the market over the coming years, which could help alleviate global prices and stimulate demand, particularly from countries sensitive to price fluctuations.
Additionally, the report highlighted ongoing challenges facing gas projects, including rising costs, supply chain disruptions, and labor shortages, factors that could impact the timelines of several major projects.
In this context, Bloomberg reported that QatarEnergy is considering delaying the launch of a significant LNG expansion project until after 2027 amid these challenges.
