Posted on Leave a comment

Shell predicts 90% growth in LNG demand

Energy major Shell has predicted in its latest industry outlook that the global demand for liquefied natural gas (LNG) will surpass 700 million tons a year by 2040, which would be a 90% increase on 2021 levels.

LNG is produced by cooling natural gas down to a liquid state, so it occupies about 1/600th of the original volume. This can then be transported in a non-pressurised state to markets that are not connected by pipeline infrastructure. In addition to producing crude oil, making lubricants like the Shell Tellus hydraulic oil and increasingly investing in green energy generation, Shell is one of the world’s biggest traders of LNG.

Asia is expected to drive most of the growth as regional economies grow while local gas production declines. These countries will also be looking to replace more-polluting energy sources like coal with LNG. In a statement, Shell’s director for integrated gas, energy solutions and renewables, Wael Sawan, said about this:

“As countries develop lower-carbon energy systems and pursue net-zero emissions goals, focusing on cleaner forms of gas and decarbonisation measures will help LNG to remain a reliable and flexible energy source for decades to come.”

Shell also pointed out that the United States is currently driving LNG export growth, with its exports rising by 24 million tons last year. High gas prices in Europe due to geopolitical tensions, relatively low inventory levels and lower-than-normal supply from Gazprom have made it attractive to ship US LNG to Europe, rather than sell it on the domestic market where prices are much lower.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.