Shell sees Asian growth driving 60% rise in global LNG demand by 2040

The company’s latest LNG Outlook report analyzes this growth supported by emissions reductions in heavy industry and transport.

Shell sees global demand for liquefied natural gas (LNG) is projected to rise by approximately 60% by 2040, fueled by economic expansion in Asia.

According to the mobility giant’s LNG Outlook 2025, this growth will be supported by emissions reductions in heavy industry and transport, and AI’s growing energy requirements. Industry forecasts now place demand between 630 and 718 million tonnes per year by 2040, marking an upward revision from last year’s estimates.

“Upgraded forecasts highlight the need for more gas across power generation, heating and cooling, industry, and transport to support both development and decarbonization,” said Tom Summers, Senior Vice President for Shell LNG Marketing and Trading.

China is aggressively expanding its LNG import infrastructure and plans to extend piped gas connections to 150 million people by 2030 to support rising consumption. India is also ramping up its natural gas infrastructure, targeting 30 million new gas connections over the next five years.

Meanwhile, Europe’s reliance on LNG is expected to persist into the 2030s, balancing the intermittency of renewable power sources and ensuring energy security.

By 2030, the U.S. is expected to solidify its position as the world’s top LNG exporter, reaching 180 million tonnes annually and accounting for one-third of global supply.