Shell Sees LNG Trade Flat in 2026 as Hormuz Chokes Supply
Bloomberg 2026-06-30 07:00:00
Context: Shell Plc is forecasting that the global liquefied natural gas (LNG) trade will remain flat in 2026, marking a significant departure from over a decade of steady growth, due to supply constraints caused by the ongoing conflict in the Middle East, specifically in the Strait of Hormuz. This forecast comes as the energy industry faces challenges in meeting demand for LNG, a crucial component in the global transition to cleaner energy sources. The stagnation in LNG supply growth is expected to have far-reaching implications for energy markets and global efforts to reduce carbon emissions.
Key Facts
- Shell Plc expects global liquefied natural gas supply to be flat year-on-year in 2026, after more than a decade of growth, as the conflict in the Middle East chokes supply.
- The conflict in the Middle East, particularly in the Strait of Hormuz, is cited as a primary reason for the anticipated stagnation in LNG supply growth.
- The Strait of Hormuz is a critical waterway for global oil and gas supplies, and disruptions in the region have historically led to significant volatility in energy markets.
- The forecast by Shell Plc has implications for the global energy landscape, particularly for countries and industries relying on LNG as a transitional fuel to reduce carbon emissions.
- The LNG trade has experienced over a decade of growth prior to this forecast, driven by increasing demand for cleaner-burning fuels and the expansion of LNG production capacity in various regions.