2024-02-18 08:24:00 ET
America has an abundance of low-cost natural gas. We have more gas than we can use, which is leading energy companies to develop liquefied natural gas (LNG) export terminals to ship the excess overseas where demand is robust. According to energy giant Shell (NYSE: SHEL) , global LNG demand will rise by more than 50% by 2040.
That prediction bodes well for companies currently developing LNG export capacity in the U.S. While they recently faced a setback after the Biden Administration temporarily paused new approvals, Shell's forecasts suggest the global economy will need more U.S. LNG in the future.
Shell recently released its LNG outlook for 2024. The oil and gas company noted that global LNG trade reached 404 million tonnes last year, up about 2% from 2022. It expects global LNG demand to steadily increase over the next couple of decades, reaching more than 600 million tonnes by 2040.
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