LNG Demand Growing Faster Than Global Gas Market, Shell CEO Projects

Global demand for liquefied natural gas (LNG) is expanding at a faster pace than the broader natural gas market, with annual growth projected at about 3 per cent, according to the Chief Executive Officer of Shell Plc.

The Shell CEO said LNG continues to gain strong traction worldwide as governments and energy consumers seek reliable, cleaner-burning fuel options amid rising energy security concerns and the transition toward lower-carbon energy systems.

He noted that LNG’s growth is being driven by its flexibility and global reach, allowing gas to be transported across long distances to markets that lack pipeline infrastructure. This advantage, he said, is accelerating investments in LNG import terminals and floating storage and regasification units (FSRUs), particularly in emerging and energy-hungry economies.

Europe remains a key source of demand after rapidly increasing LNG imports to replace reduced pipeline gas supplies in recent years. At the same time, Asian markets—especially China, India, and Southeast Asia—are expanding LNG consumption to meet rising electricity demand while reducing dependence on more carbon-intensive fuels such as coal.

Shell, one of the world’s largest LNG producers and traders, expects the fuel to play a central role in the global energy mix for decades. The company believes LNG will remain critical in supporting economic growth and balancing power systems as renewable energy capacity expands.

Gas-fired power plants, the CEO said, provide essential backup for intermittent renewable sources such as wind and solar, helping to maintain grid stability while lowering overall emissions compared with coal-based generation.

Despite growing pressure on oil and gas companies to scale back fossil fuel investments, Shell maintains that LNG represents a practical transition fuel that supports both energy security and emissions reduction goals in the medium term.

The company continues to invest in LNG production, shipping, and trading infrastructure, positioning itself to benefit from sustained global demand as energy markets evolve.

Shell CEO: LNG Market Expanding Faster Than Global Gas Demand

Global LNG demand is growing faster than the wider natural gas market, with Shell projecting annual growth of about 3%, driven by energy security needs and the transition to cleaner fuels.