Shell predicts 60% surge in global gas demand by 2040

Strong economic growth in Asia, particularly in countries like China and India, is set to significantly increase global gas consumption by 2040, with predictions indicating a rise of up to 60%. According to Shell's annual industry report issued in February 2025, the demand for liquefied natural gas (LNG) is expected to soar between 630 million and 718 million tonnes annually. This projection reflects the growing need for cleaner energy solutions amidst efforts in heavy industry and transport to reduce emissions. The report also highlights a disconnect between Shell's forecasts and the International Energy Agency's (IEA) outlook, which suggested that global gas demand might peak before the end of the decade, aligning with the goals outlined in the Paris climate agreement. This divergence indicates differing perspectives within the energy sector regarding the long-term viability and role of natural gas in the global energy mix. As the Asian markets continue to develop, the industrial and domestic consumption of gas is anticipated to escalate. The ongoing transition towards sustainable energy practices requires a balance between growing energy demands and the need to mitigate environmental impact, making the future supply of LNG critical to meeting these needs. Despite the slower growth in gas consumption observed in the previous year, Shell's projections reflect optimism about LNG's potential as a crucial energy source in the years to come. This situation raises significant questions about whether there will be sufficient supply to meet the anticipated demand in the face of increasing environmental regulations and competition from other energy sources.