Energy giant Shell has warned that disruptions to shipping through the Strait of Hormuz could slow global liquefied natural gas (LNG) trade during 2026, even as long-term demand for LNG is projected to grow significantly.

The company expects global LNG demand to increase by around 65 percent by 2050, driven by industrial growth and the global energy transition.

Shell noted that although recent geopolitical tensions have eased, any future disruptions in one of the world’s busiest energy shipping routes could temporarily affect supply chains and international energy markets.

Businesses that depend heavily on natural gas continue to monitor developments closely.

The company’s long-term outlook remains optimistic, with Asia expected to account for much of the future growth in LNG consumption.

Countries are increasingly turning to natural gas as a lower-emission alternative while expanding renewable energy capacity.

Energy analysts say continued investment in LNG infrastructure will be essential to meeting future demand while maintaining energy security.

Shipping reliability and geopolitical stability remain key concerns for producers and consumers alike.

Shell believes natural gas will continue playing an important role in the global energy mix for decades, particularly as industries seek cleaner fuel alternatives without sacrificing energy reliability.

Source: Reuters