Global demand for liquefied natural gas (LNG) is projected to reach nearly 700 million tonnes annually by 2050, up around 65 per cent from 2025 levels, driven by growing demand for secure, flexible and lower-emission energy, according to Shell’s LNG Outlook 2026.

Global LNG trade reached 422 million tonnes in 2025 and was expected to grow further in 2026.

However, disruption to shipping through the Strait of Hormuz has temporarily halted around one-fifth of the world’s monthly LNG supply, pushing spot prices above $20 per million British thermal units (MMBtu) and affecting energy-importing nations, particularly in Asia.

Shell said increased liquefaction capacity in North America, improved output from existing facilities and slower LNG imports in parts of Asia have helped offset reduced Middle East supplies.

If shipping through the Strait of Hormuz normalises during the summer, global LNG trade in 2026 is expected to remain broadly in line with last year before returning to growth in 2027.

Around 180 million tonnes of new annual LNG supply is forecast to enter the market by 2030, improving availability and affordability.

However, importing countries will need additional infrastructure, including regasification terminals and pipeline networks, to fully benefit from increased supply.

South and Southeast Asia are expected to account for around 40 per cent of global LNG imports by 2050, while demand from emerging sectors such as LNG-fuelled shipping is forecast to increase seven-fold to 27 million tonnes by 2035.

 In mature markets such as Japan, expanding data centres are also expected to boost gas demand.

Shell said continued investment in new liquefaction projects will be essential, with around 200 million tonnes of additional annual supply required beyond projects already under construction.

Despite recent price volatility, the company noted that the global LNG market is now more resilient than during the 2022 energy crisis, supported by long-term supply contracts that account for roughly two-thirds of global LNG trade.

“The conflict created a system-wide shock with disruption cascading across all segments of the economy, but the LNG industry has proved resilient and able to adapt to changing market conditions,” said Cederic Cremers, President of Integrated Gas at Shell. “While more investment in both supply and demand infrastructure is needed, the long-term outlook remains strong and LNG will continue to be a stabilising force in the global energy system.” -OGN/TradeArabia News Service