London: British energy giant Shell has forecasted a significant increase in global demand for liquefied natural gas (LNG), estimating a rise of over 50 percent by 2040. This surge in demand is primarily attributed to China’s transition away from coal.
According to a report released by Shell, while natural gas demand has already peaked in certain regions, it continues to grow on a global scale. The latest industry estimates suggest that LNG demand could reach approximately 625-685 million tonnes per year by 2040.
Shell anticipates that beyond 2040, global LNG demand will continue to expand, fueled by industrial demand in China and economic development in South Asia and Southeast Asia.
Steve Hill, Executive Vice President for Shell Energy, highlighted China’s pivotal role in driving LNG demand growth in the coming decade. He noted that China’s industry is shifting from coal to gas in a bid to reduce carbon emissions, with LNG playing a crucial role in this transition.
While LNG is considered cleaner than coal, it still emits greenhouse gases contributing to global warming. However, industry stakeholders and many governments view LNG as a transitional fuel between coal and renewable energy sources like wind and solar.
Hill emphasized the importance of gas in addressing carbon emissions and local air pollution, particularly in sectors like China’s coal-based steel industry, which generates more emissions than the combined total of the UK, Germany, and Turkey.
Shell’s projections underscore the increasing significance of LNG in the global energy landscape, driven by China’s efforts to reduce carbon emissions and embrace cleaner fuel alternatives.
