Shell expects 65% rise in global LNG demand by 2050

Tuesday 30 June 2026 - 07:52

By: Sahili Aya

Shell expects 65% rise in global LNG demand by 2050

Global demand for liquefied natural gas (LNG) is on course for substantial long-term growth, with consumption expected to increase by approximately 65% by 2050 as Asian economies accelerate their energy transition and electricity demand continues to climb.

According to Shell's latest annual LNG Outlook, worldwide demand could approach 700 million metric tons per year by mid-century. The forecast reflects rising energy needs across emerging markets, where governments are increasingly turning to natural gas as a lower-emission alternative to coal while expanding power generation capacity.

Asia is expected to remain the primary engine of growth. South Asia and Southeast Asia are projected to account for around 40% of global LNG imports by 2050, supported by rapid urbanization, industrial development and expanding electricity consumption. The report also highlights growing demand from data centres, whose increasing energy requirements are becoming an important driver of power market investment worldwide.

Despite the optimistic long-term outlook, Shell anticipates that global LNG trade will remain broadly stable during 2026 before returning to stronger growth in 2027. The temporary pause reflects market adjustments as new production capacity gradually comes online and buyers adapt to shifting supply conditions.

The forecast reinforces LNG's strategic role in the global energy mix during the coming decades. While renewable energy continues to expand, many countries view natural gas as a transitional fuel capable of supporting energy security, reducing reliance on coal and balancing intermittent renewable power generation.

For producers, exporters and infrastructure investors, the outlook signals continued opportunities across the LNG value chain, particularly in fast-growing Asian markets where demand for reliable and flexible energy supplies is expected to remain robust over the long term.