Shell forecasts that the global demand for liquefied gas will increase by over 50% by 2040, as people switch to cleaner energy sources.
The oil major’s latest energy outlook suggests that global demand will peak in 2040, with the growth of the big Asian economies countering the declines in Europe and the United States.
The prediction for 700 million tonnes was lowered to 625 to 685 millions tonnes per year by 2040.
Since the start of the Ukraine conflict, LNG imports from the United States have become increasingly important as Europe tries to reduce its dependence on Russian pipeline gas.
America was the largest gas exporter in the world for the first year last year. It shipped 86 million tons of gas and overtook Australia and Qatar, despite only shipping its first cargo in 2016. Shell says that the US will continue to lead growth in supply this year. The US is expected to drive a global increase between seven and twenty millions tonnes per year.
Shell has become the largest LNG trader in the world. The company has also benefited from the increased volatility of fuel prices since the start of the Ukraine conflict.
Even though LNG imports were near record levels last year, the company believes that European Demand peaked in 2010. Prices were lowered by relatively mild weather and high gas storage levels.
Steve Hill, Shell Energy’s executive vice president, stated that China has reclaimed the position of top LNG importer and will likely dominate demand growth in this decade, as it moves away from coal. Steve Hill, executive vice-president for Shell Energy, said that China’s coal based steel sector accounts for more emissions than total emissions from the UK, Germany, and Turkey together. Gas has an important role to play when tackling the biggest source of local air pollution and carbon emissions in the world.