Key facts
- Global natural gas demand forecasts are being reshaped by Middle East supply disruptions and high prices.
- Renewables are increasingly meeting global electricity demand growth, reducing gas's role in power generation.
- Industrial processes and the AI boom are expected to drive future natural gas demand.
- Shell projects global LNG demand to reach nearly 700 million tons annually by 2050.
Global natural gas demand is facing a period of uncertainty due to the impact of Middle East supply disruptions and elevated prices, which have led economies in Europe and Asia to increase their reliance on renewables and coal for power generation. Despite a declining share of gas in the global power mix, driven by the growth of solar and wind energy, industrial applications and the increasing electricity demands of artificial intelligence data centers are expected to sustain long-term demand. Shell, a major LNG trader, forecasts a significant increase in global LNG demand by 2050, while the International Gas Union views LNG as a crucial 'shock absorber' for the global economy.