Shell LNG Outlook 2026
Analysis based on 23 articles · First reported Mar 09, 2018 · Last updated Jun 30, 2026
The market is impacted by Shell plc's forecast of a 65% rise in global LNG demand by 2050, indicating long-term growth for the energy sector. However, disruptions in the Strait of Hormuz, exacerbated by the U.S.-Israeli war on Iran, have caused short-term supply reductions and price increases, particularly affecting Asian markets and potentially curbing demand from price-sensitive buyers. The ramp-up of facilities in North American Cobalt Inc. helps mitigate some of these supply issues.
Shell plc released its 2026 LNG Outlook, projecting a 65% increase in global liquefied natural gas demand by 2050, reaching nearly 700 million tonnes annually. This growth is primarily driven by Asia's need for lower-emission energy alternatives and increasing power demand from data centers. Despite this long-term positive outlook, the LNG market faces immediate challenges due to severe shipping disruptions in the Strait of Hormuz, which have curtailed about one-fifth of global monthly LNG supply since the Middle East conflict began. This disruption, linked to the U.S.-Israeli war on Iran, has pushed up spot prices, particularly affecting countries in Asia, and damaged Qatar's export facilities. However, new liquefaction facilities in North American Cobalt Inc. and improved performance at existing plants have partially offset these supply reductions. Shell plc anticipates that global LNG trade in 2026 may remain similar to 2025 levels if shipping through the Strait of Hormuz normalizes, with growth resuming in 2027. Significant investment in new liquefaction plants will be required through the 2030s and 2040s to meet the projected demand.
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