Shell (SHEL) said Monday that global demand for LNG is expected to rise by 54% to 68% by 2040.

LNG demand is expected to increase from 422 million tonnes per annum, or mtpa, in 2025 to between 650 mtpa and 710 mtpa by 2040, the company said.

Shell also said it has extended its forecast range to 2050, with LNG demand expected to rise to between 610 mtpa and 780 mtpa by 2050, representing an increase of 45% to 85%.

"Much of the growth in LNG demand will take place in developing markets, particularly in Asia, where the use of natural gas is playing a critical role in lowering emissions," Shell said.

The company said that while the conflict in the Middle East has "created high levels of volatility in prices," Shell "continues to have a positive outlook for LNG over the long term."

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