Global demand for liquefied natural gas is expected to increase to almost 700 million tonnes a year by 2050, a surge of around 65% from last year's levels, according to Shell (SHEL).

In its 2026 LNG Outlook, Shell said countries will continue to prioritize LNG's flexible and reliable energy security.

The ramp-up of new liquefaction facilities in North America, improved performance at existing plants, and slower Asian LNG imports have partially offset the impact of reduced supply from the Middle East, the oil and gas exploration giant said Tuesday.

As a result, total LNG trade in 2026 could be similar to last year if shipping through the Strait of Hormuz returns to normal this summer, before returning to growth in 2027. A total of 422 million tonnes of LNG was traded in 2025.

About 180 million tonnes of new annual supply are forecast to enter the market by 2030, according to Shell.

Shell's forecasts show that South and Southeast Asia will account for around 40% of global LNG imports by 2050 to meet the rapidly growing demand.

Although spot LNG prices in Asia rose to more than $20 per million British thermal units (MMBtu) at the peak of the Middle East crisis, they remained significantly lower than in 2022, when gas supplies were disrupted following the Russian invasion of Ukraine, reflecting the LNG market's greater resilience now, according to Shell.

With long-term supply agreements accounting for around two-thirds of total LNG trade, the average price buyers paid for LNG in May was $11-12 per MMBtu, compared with $7-11 in January before the conflict began, per the Shell statement.