- This year’s forecasts are slightly lower than Shell’s 2023 estimates for LNG
Shell expects global demand for liquefied natural gas (LNG) to increase more than 50 percent by 2040.
The FTSE 100-listed oil giant said the shift from industrial coal to gas was accelerating in China and countries in South and Southeast Asia.
Shell’s LNG forecast is slightly lower than last year and the group said it expects natural gas demand to peak after 2040. It said natural gas demand had already peaked in some regions. .
Looking ahead: Shell expects global demand for liquefied natural gas to increase by more than 50% by 2040
Steve Hill, executive vice-president of Shell Energy, said: “China is likely to dominate LNG demand growth this decade as its industry seeks to reduce carbon emissions by switching from coal to gas.
“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 largest sources of carbon emissions and pollution in the world. local air of the world”.
Shell added: ‘Over the next decade, declining domestic gas production in parts of South and Southeast Asia could drive an increase in LNG demand as these economies increasingly need fuel for power plants or industry. gas powered.
“However, South and Southeast Asian countries would need significant investments in gas import infrastructure.”
Shell said LNG demand was expected to reach between 625 million and 685 million tonnes a year in 2040, up from 404 million tonnes last year.
Last year, Shell said it expected LNG demand to reach between 650 million and 700 million tonnes.
Shell said LNG continued to play a “vital role” in European energy security last year, following a drop in Russian pipeline exports to Europe in 2022.
European LNG imports remained at similar levels to 2022, despite an overall drop in European gas demand in 2023, Shell said.
LNG is natural gas that has been reduced to a liquid state through a cooling process.
According to National Grid, LNG produces 40 percent less carbon dioxide than coal and 30 percent less than oil.
Shell’s profits fell almost 30 per cent last year, but the energy giant still made more than £22bn.
A sharp drop in oil and gas prices meant profits fell by almost a third, from a record £31.6 billion in 2022 to £22.4 billion in 2023.
But the oil major still beat analyst expectations of £21.2bn for the year as it racked up profits of £60m a day. Greenpeace activists held a mock “profit party” outside Shell’s headquarters in London in protest.
shell actions They rose 0.92 per cent or 23.00 pence to 2,511.50 pence on Wednesday afternoon.