Global demand for liquefied natural gas (LNG) is expected to grow by around 65 per cent by 2050, reaching nearly 700 million tonnes per year, according to Shell’s LNG Outlook 2026. The energy company says LNG will continue to play a key role in energy security and the transition away from coal.
Global LNG trade reached 422 million tonnes in 2025. However, supply growth in 2026 has been affected by disruptions to shipping through the Strait of Hormuz, which temporarily shut in around one-fifth of global monthly LNG supply and pushed up spot prices. Shell expects the market to recover if shipping through the strait returns to normal, with stronger growth forecast from 2027 onwards.
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Growth in North America and Asia
Around 180 million tonnes of new annual liquefaction capacity is expected to come online by 2030, largely in North America, improving global supply. Shell says additional investment in liquefaction plants, import terminals and pipeline infrastructure will nevertheless be required throughout the 2030s and 2040s to meet long-term demand.
The report identifies South and Southeast Asia as the main growth markets, together accounting for around forty per cent of global LNG imports by 2050. Europe is also expected to remain an important LNG market as domestic gas production declines and gas continues to balance renewable energy generation.
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Strong growth in LNG bunkering
For the maritime sector, Shell forecasts strong growth in LNG bunkering, with demand expected to increase seven-fold to 27 million tonnes by 2035. The company notes that more than 800 LNG-fuelled vessels are now in operation worldwide, compared with just 77 when it published its first LNG Outlook in 2017.
Shell concludes that despite recent geopolitical disruptions, the LNG market has become more resilient and remains well positioned for long-term growth.
View Shell’s LNG Outlook 2026 here.
Picture: Shell’s Dragon LNG Terminal, Milford Haven, UK (photo by Stuart Conway/Shell).
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