Natural gas market will continue to grow into 2040s

The global liquefied natural gas (LNG) market will continue growing into the 2040s, mostly driven by China's industrial decarburization and the increasing demand in other Asian countries, according to a recently released report.

Global demand for LNG is estimated to rise by more than 50 percent by 2040, as industrial coal-to-gas switching gains pace in China, as well as in South and Southeast Asian countries, using more LNG to support their economic growth, according to Shell's LNG Outlook 2024.

"China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas," said Steve Hill, Executive vice-president for Shell Energy.

According to the report, China's gas infrastructure development has accelerated while the country's long-term gas and LNG demand outlook remains strong.

Relatively mild winter temperatures in countries that rely on gas for heating, combined with high gas storage levels, stronger nuclear power generation and a modest economic recovery in China, helped balance the global gas market in 2023, it said.