HOUSTON, TEXAS (Editors at Energy Analytics Institute, 25.Feb.2025) — The global trade of liquefied natural gas (LNG) reached 407 million tonnes (Mt) in 2024, up just 3 Mt compared to 2023, marking the the lowest annual supply addition for 10 years, Shell plc announced on 25 Feb. 2025 in its Shell LNG Outlook 2025. This, due to constrained new supply development.
According to the outlook, LNG demand strengthened in Asia during the first-half 2024 as “China took advantage of lower prices and India bought more cargoes to help meet strong power demand due to hot summer weather, [while] European imports fell by 23 million tonnes, or 19%, due to strong renewable energy generation and continued weakness in industrial gas demand.”
Demand for gas continues to gather pace across Asia, with China and India — the 2 largest populations centers in Asia and the world — significantly increasing their regasification and downstream infrastructure. Over 170 Mt of new LNG supply is slated to come on to the market by 2030, which is expected to assist to meet growing long-term global demand for gas.
But project start-up timings remain uncertain, Shell said.
Importantly, Europe and Japan will continue to require LNG to fill a widening gap between energy diversification ambitions and actual investment levels.
By 2040, the global trade in LNG is set to rise significantly, by around 60%, according to Shell, and “driven by Asian economic growth, the need to decarbonize heavy industry and transport and the emerging growth in the energy-intense tech sector.”
LNG is becoming a cost-effective fuel for shipping and road transport that can bring down emissions. Longer term, existing gas infrastructure could be used to import bio-LNG or synthetic LNG and also repurposed for the import of green hydrogen.
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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
