Global demand for liquefied natural gas (LNG) is expected to increase by about 65 per cent by 2050, driven largely by rising energy needs in South and Southeast Asia, according to Shell’s latest LNG market outlook.

The energy company projects annual LNG demand to approach 700 million tonnes by mid-century, up from about 422 million tonnes recorded in 2025, as developing economies continue to rely on natural gas to support economic growth and energy security.

Despite the strong long-term outlook, Shell said LNG trade in 2026 has been disrupted by tensions around the Strait of Hormuz, a key shipping route for global energy supplies. The conflict temporarily interrupted around one-fifth of the world’s monthly LNG supply, sending spot prices to multi-year highs and discouraging some Asian buyers from purchasing cargoes.

According to the company, global LNG trade could remain roughly unchanged this year if shipping through the Strait of Hormuz returns to normal in the coming months. However, prolonged disruptions or renewed interruptions to vessel movements could reduce supply further.

Qatar, the world’s second-largest LNG exporter after the United States, has already begun positioning tankers to resume exports through the Gulf as conditions improve.

Shell’s President of Integrated Gas, Cederic Cremers, said the recent conflict caused widespread disruption across energy markets but demonstrated the LNG industry’s ability to adapt to changing conditions.

He added that continued investment in LNG production and import infrastructure would be necessary to meet future demand, noting that LNG is expected to remain an important part of the global energy mix over the coming decades.