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Shell Plc sees long-term global demand for liquefied natural gas continuing to grow because of its flexibility and reliability, even as the conflict in the Middle East brings volatility to prices.
The company expects consumption for the fuel to surge by at least 45% by 2050 from 2025 levels, it said Monday. It expects demand to range between 610 million to 780 million annually by mid-century.
The report comes as global LNG markets have been upended by the war in the Middle East, with traffic through the Strait of Hormuz — a crucial transit for fuel shipments — reduced to a trickle. While Shell didn’t comment on the impact from the conflict, Bloomberg reported that it has declared force majeure, a contractual clause that allows a company to interrupt shipments to some customers, due to the shutdown at the world’s largest export plant in Qatar.
The report, a variation of the company’s annual outlook, compiles industry analysis. This year Shell extended the range of its forecast by a decade to 2050. The oil and gas major said the data in Monday’s report was “accurate as of March 16, 2026,” but any final LNG outlook could vary “due to the evolving conflict in the Middle East.”
Read More: LNG Suppliers Declare Force Majeure on Contracts From Qatar
Shell bets Asia will continue to be the main demand driver as it remains the center of global economic growth at least until 2050. While European nations chase their net zero targets, they will continue to need LNG as renewable roll-outs lag, the report said.
The anticipated increase in demand comes as the market is poised to be oversupplied. Still, the increased fuel availability will help lower global gas prices, which Shell expects will boost price-sensitive “latent demand.”
However, the timelines for some LNG projects remain uncertain because of costs, supply and labor issues, Shell said.
Last week, Bloomberg reported that QatarEnergy is pushing back the start of a major liquefied natural gas expansion project to at least 2027.
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