LNG demand is increasing worldwide as natural gas has an important role to play in building a lower-carbon recovery from COVID-19 and in progress towards net-zero emissions, according to Shell's LNG Outlook 2021 late on Thursday.
Global LNG trade grew by one million tonnes to 360 million tonnes - enough to power 725 million homes for a full year in 2020, the report showed.
According to Shell, as demand for natural gas continues to grow strongly in Asia and gains further traction in powering hard-to-electrify sectors, global LNG demand is expected to double to 700 million tonnes by 2040.
Shell noted that natural gas can play a key role in addressing emissions reduction, as this would require cleaner energy solutions for all sectors and specifically those which are hard to abate.
Natural gas, whether in partnership with renewables or as an energy source for hard-to-electrify sectors, helps to lower overall emissions, the report showed.
The report gave the example of South Korea, which aims to reach net-zero emissions by reducing its dependence on coal and increasing the share of gas and renewables in its national energy mix.
'Despite the unprecedented volatility, global demand for LNG increased to 360 million tonnes. Though marginal, the growth reflected the resilience and flexibility of LNG,' it said.
By Murat Temizer