Asia seen driving 75% of LNG demand growth by 2040: Shell LNG outlook

Significant demand-supply gap seen opening in middle of current decade; China and India led LNG demand growth in 2020

Asian countries are expected to drive most of the demand for Liquefied Natural Gas (LNG) by 2040 according to Shell’s LNG Outlook 2021.

“Overall, global LNG demand is estimated to hit 700 million tonnes by 2040. Asia is expected to drive nearly 75 per cent of this growth as domestic gas production declines and LNG substitutes higher emission energy sources, tackling air quality concerns and meeting emissions targets,” the outlook said.

Demand-supply gap anticipated

According to the outlook, as demand grows, a supply-demand gap is expected to open in the middle of the current decade with less new production coming on-stream than previously