Global LNG demand will nearly double to 700 million tonnes by 2040

Royal Dutch Shell said in its annual LNG market outlook that global demand for liquefied natural gas (LNG) is expected to double to 700 million tonnes
by 2040.

Global LNG demand was 360 million tonnes in 2020, up slightly from 358 million tonnes in 2019, despite market turmoil
caused by lockdowns during the coronavirus pandemic.

Global LNG prices hit record lows at the start of 2020, but year-end LNG demand closed at a six-year high as demand recovered in parts of Asia and winter purchases increased amid tighter supplies
, Shell said.

Asia is expected to drive LNG demand growth by nearly 75%
by 2040 due to declining domestic natural gas production and the replacement of more emitting energy sources by LNG.

In 2020, following the onset of the pandemic, China and India led the recovery
in LNG demand.
China's annual LNG imports increased by 7 million tonnes to 67 million tonnes, up 11 percent
from the previous year.

China's goal of achieving carbon neutrality by 2060 is expected to continue to drive its LNG demand
.

India, Asia's other major market, also supplemented its domestic gas production with low-priced LNG, increasing imports by 11%
in 2020.

Shell showed in its outlook report that it expects the gap between supply and demand to open by the middle of this decade, with new capacity coming on stream less than previously expected
.

In 2020, only 3 million tons of LNG production capacity was added globally, well below the expected 60 million tons
.