Shell LNG Outlook 2022

The global trade in LNG increased 6% to 380 million tonnes during 2021 as many countries rebounded from the economic impact of the COVID19 pandemic, according to Shell’s latest annual LNG Outlook published today.

Prices reached record levels in October 2021 as Europe struggled to secure LNG cargoes to meet expected winter gas demand. An LNG supply-demand gap is forecast to emerge in the mid-2020s and focuses attention on the need for more investment to increase supply and meet rising LNG demand, especially in Asia.

“Last year showed just how crucial gas and LNG are in providing communities around the world with energy they need as they strived to get back on track following the difficulties caused by the COVID-19 pandemic.” said Wael Sawan, Integrated Gas, Renewables and Energy Solutions Director at Shell.

The United States led export growth with a year-on-year increase of 24 million tonnes. The U.S. is expected to become the world’s largest LNG exporter in 2022. China and South Korea led the growth in LNG demand in 2021. China increased its LNG imports by 12 million tonnes to 79 million tonnes, surpassing Japan to become the world’s largest LNG importer. During 2021 Chinese LNG buyers signed long-term contracts for more than 20 million tonnes a year, signaling an ongoing role for LNG in coal-to-gas switching in powering key sectors and helping to reach its ambition to be carbon neutral by 2060.

The Shell LNG Outlook 2022 PDF can be downloaded here.