By Giulia Petroni

British oil company Shell expects robust liquefied-natural-gas demand growth in the coming years, with the fuel set to account for more than half of global natural-gas demand growth by the end of this decade.

Global demand for LNG is estimated to grow between 54% to 68% by 2040 and 45% to 85% by 2050 from 422 million metric tons a year in 2025, largely driven by Asian markets.

The report comes as the war in Iran enters its third week, with LNG supplies being disrupted by attacks on energy infrastructure and as traffic through the Strait of Hormuz--one of the world's most critical routes for oil and LNG shipping--is effectively at a standstill.

"While the conflict has created high levels of volatility in prices, Shell continues to have a positive outlook for LNG over the long term," the world's largest LNG trader said Monday. However, the company also said it hasn't published part of its outlook due to the uncertain geopolitical situation.

Shell expects Asian countries--which account for roughly 65% of total LNG demand--will depend on the fuel to meet rising energy demand, while European nations will continue relying on LNG to bolster domestic gas supplies.

"Supplying LNG will be the biggest contribution Shell makes to the energy transition over the next decade," it said.

The LNG industry is entering what Shell describes as a new investment "supercycle," with major projects in the U.S. and Qatar expected to add significant volumes starting this year. The industry anticipates the market could expand nearly 40% by 2030, potentially creating a period of oversupply and weaker prices, though Shell said the timing remains uncertain due to frequent delays in large-scale LNG projects.

The company targets 4%-5% annual growth in LNG sales through 2030.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

March 16, 2026 08:38 ET (12:38 GMT)

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