Shell Plc said that demand for liquefied natural gas by 2040 will be slightly lower than previously forecast as the world is preparing for life beyond fossil fuels.
The energy major, which usually holds a bullish stance on consumption, said in its Global LNG Outlook that demand is expected to reach around 625-685 million tons a year in 2040, compared with a previous estimate which saw top usage exceed 700 million tons.
Overall, global demand for liquefied natural gas is expected to rise by more than 50% by 2040, even as gas consumption starts to peak, Shell Plc said.
The LNG market “will continue growing into the 2040s, mostly driven by China’s industrial decarbonisation and strengthening demand in other Asian countries,” Shell said.
Shell holds the largest gas liquefaction and marketing portfolio among global energy majors, servicing almost 20% of worldwide demand, according to Bloomberg Intelligence.
— With assistance from Stephen Stapczynski
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