Shell is expecting the global demand for liquefied natural gas (LNG) t0 increase by more than 50 per cent in 2024, as China and other South and Southeast Asian nations utilise more LNG to bolster their economic growth, according to the company’s LNG Outlook 2024 report.
The global trade in LNG have increased by 1.8 per cent to 404 million metric tons in 2023 from 397 million tons in 2022, with tight supplies of LNG constraining growth, the report added.
The company also stated that limited supply is keeping prices and price volatility above historical averages and limiting economic growth.
Moreover, the report mentioned that although natural gas demand has peaked in some areas, it is still growing globally and is predicted to reach roughly 625–685 million tons annually in 2040 based on the most recent industry estimates.
“China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas,” Steve Hill, Executive Vice President for Shell Energy, said in a statement following the release of the report.
He further added that “With China’s coal-based steel sector accounting for more emissions than the total emissions of the UK, Germany and Turkey combined, gas has an essential role to play in tackling one of the world’s biggest sources of carbon emissions and local air pollution,”
