Shell Sees Global LNG Demand Rising 65% by 2050 on Asian Growth
Shell forecasts global LNG demand will surge 65% by 2050 from 2025 levels, driven by South and Southeast Asia, though the Strait of Hormuz crisis has stalled growth this year.
Shell, the world's largest LNG trader, projects that global liquefied natural gas demand will surge 65% by 2050 from 2025 levels, driven primarily by rising consumption in South and Southeast Asia. The forecast was published in Shell's annual LNG Outlook 2026 on Tuesday, which also noted that 422 million tons of LNG were traded globally last year.
The outlook highlights a stark regional divergence: while Asian economies are expected to drive long-term demand growth, the immediate market has been disrupted by the Strait of Hormuz crisis, which has shut in about a fifth of the world's monthly LNG supply. This conflict has stalled growth this year, reversing earlier expectations of a jump in trade in 2026. For energy traders, the interplay between geopolitical risk and structural demand growth creates a volatile backdrop for LNG pricing and supply contracts. Traders can check NowPrice's fuel page for current LNG spot prices and regional benchmarks.
Looking ahead, the trajectory of LNG demand hinges on the resolution of Middle East tensions and the pace of infrastructure buildout in Asia. Key data points to watch include monthly LNG trade volumes from Qatar and Australia, as well as any updates on new liquefaction capacity coming online. The long-term bullish outlook from Shell suggests that strategic positioning in LNG-linked assets may remain attractive despite near-term headwinds.