Shell’s LNG Outlook 2026 highlights the strong growth in global LNG demand as well as the increased resilience of the LNG market

Global demand for liquefied natural gas (LNG) is expected to increase to nearly 700 million tonnes a year by 2050, an increase of around 65% from 2025 levels, according to the Outlook,

LNG remains a core pillar of the global energy system, with demand driven by Asian economic growth and intensifying energy security risks.

Disruption to shipping through the Strait of Hormuz as a result of the Middle East crisis has shut in around one fifth of the world’s monthly LNG supply since the conflict started, pushing up prices on the spot market and adversely affecting some countries in Asia.

This loss of supply has been partially offset by the ramp up of new liquefaction facilities in North America, improved performance at existing plants and reduced Asian imports of LNG. As a result, total LNG trade in 2026 could be similar to last year, when 422mn tonnes of LNG was traded, if shipping through the Strait of Hormuz returns to normal this summer, before returning to growth in 2027.

“The conflict created a system-wide shock with disruption cascading across all segments of the economy, but the LNG industry has proved resilient and able to adapt to changing market conditions,” said Cederic Cremers, President of Integrated Gas at Shell. “While more investment in both supply and demand infrastructure is needed, the long-term outlook remains strong and LNG will continue to be a stabilising force in the global energy system.”

Supply growth

Around 180 million tonnes of annual new supply is forecast to enter the market by 2030, improving the availability and affordability of gas and opening up demand in new markets. The USA continues to lead new LNG supply growth.

However, the ability to benefit from new supply will depend on the availability of infrastructure in importing countries, including regasification capacity and pipeline connectivity, especially in South and Southeast Asia.

Those regions are forecast to account for around 40% of global LNG imports by 2050 to meet rapidly growing demand for energy with lower emissions than coal. In more mature Asian markets such as Japan, data centres are emerging as a new source of power demand.

Emerging segments of demand are also growing rapidly. According to forecasts, LNG bunkering will grow seven-fold to 27 million tonnes by 2035. LNG will continue to have a vital role to deliver energy security to Europe, to balance intermittent renewables as domestic gas production declines.

To meet the growing demand, significant additional investment will be needed in new LNG liquefaction plants through the 2030s and 2040s, with around 200 million tonnes a year of new supply needed, in addition to projects already under construction.

A more resilient market

Although spot prices of LNG in Asia increased to more than US$20 per million British thermal units (MMBtu) at the peak of the Middle East crisis, they remained significantly lower than in 2022 when gas supplies were disrupted following the Russian invasion of Ukraine, reflecting the greater resilience of the LNG market now.

With long-term supply agreements accounting for around two thirds of total LNG trade, the average price that buyers paid for LNG in May was around US$11-12 per MMBtu, compared to US$7-11 in January before the conflict began.

SLB has been awarded a seven-year contract by Kuwait Oil Company (KOC), which will see the company work with KOC to evaluate, test and deploy advanced technologies across its operations as well as establishing a new facility in Ahmadi Innovation Valley (AIV)

The agreement, under the AIV initiative, will support applied research, technology deployment and digital innovation programmes aligned with Kuwait's long-term energy objectives. Areas of focus include artificial intelligence (AI), industrial internet of things (IIoT) applications, production optimisation, reservoir technologies, water management and energy transition initiatives.

Ahmadi Innovation Valley is KOC's flagship innovation initiative that brings together industry, academia and technology providers to address strategic upstream technical challenges, with specialised facilities and technical teams focused on applied research, advanced technologies and operational excellence.

Under the agreement, SLB will establish a dedicated Ahmadi Innovation Valley facility in Kuwait, with construction expected to begin in 2026 and opening planned for 2028.

"Ahmadi Innovation Valley represents an important step in advancing technology leadership across Kuwait's energy sector," said Ahmad Jaber Al-Eidan, chief executive officer, Kuwait Oil Company. "Through collaboration with leading technology partners, we are accelerating technology deployment, strengthening local capabilities and expanding knowledge transfer to support Kuwait's energy industry."

"The energy industry has no shortage of technology. The challenge is deploying it at scale and turning innovation into operational impact," said Olivier Le Peuch, chief executive officer, SLB. "Ahmadi Innovation Valley brings together technology providers, researchers and operational teams to accelerate the evaluation, deployment and scaling of new solutions across KOC's operations. We are proud to contribute our technology, domain expertise and global experience while helping strengthen local capabilities and support the next generation of Kuwaiti talent."

SLB and KOC have a long history of collaboration going back more than 85 years. Most recently Kuwait Oil Company awarded SLB a US$1.5bn, five-year integrated contract in February this year for the Mutriba field, including design, development and production management. The work builds on SLB’s subsurface characterisation of the Mutriba field to support development planning and execution across deeper, technically demanding reservoir conditions. The contract covers development of high-pressure, high-temperature reservoirs with sour conditions.

Expanding the use of digital technologies

Kuwait Oil Company (KOC) is committed to expanding the use of digital and advanced technologies. In an interview with Oil Review Middle East, KOC’s CEO Ahmad Jaber Al- Eidan, said KOC has established an Innovation and Digitalization Team to co-ordinate enterprise- wide initiatives, including the integration of AI, advanced analytics, real-time monitoring, workflow automation and remote operations across the upstream value chain. For example, AI- powered drilling optimisation tools and predictive models for equipment reliability and well performance have been deployed to improve operational outcomes.

The Kuwait Integrated Digital Field (KwIDF) system has enabled real-time surveillance and faster data-driven decision making across operations. Smart field solutions are also being scaled across key assets.

A dedicated AI centre has been launched to optimise operational planning, assist in reservoir modelling, forecast ESP and equipment failures, enhance drilling performance and improve supply efficiency, while generative AI and advanced analytics are being embedded into workflows, supported by partnerships with leading technology providers.

“Looking ahead we are focused on piloting and scaling advanced digital solutions across all areas of our business, embedding those innovations within our operations and planning frameworks to ensure long-term scalability and aligned with our broader innovation and sustainability goals,” Al-Eidan said.

With major mining investments underway across the region, the demand for efficient and robust material transport is growing. Long-distance conveyors play a key role in reducing reliance on truck haulage and improving operational performance in challenging environments

As major mining investments gain momentum across the Middle East, operators are increasingly focused on how to move large volumes of material efficiently across vast and often remote project sites.

In this context, material transport is no longer seen as a secondary consideration, but as a strategic component of overall mine design. Long-distance conveying systems are emerging as a compelling alternative to traditional truck haulage, offering a scalable and energy-conscious solution that supports both operational performance and the region’s growing emphasis on efficiency and infrastructure development.

Large-scale mining projects today are defined by greater distances, higher throughputs and more complex site conditions. From high-altitude operations to desert environments with extreme temperatures and dust exposure, material handling infrastructure must deliver consistent performance under demanding conditions. Conveyor systems, particularly overland and in-pit crushing and conveying (IPCC) solutions, are increasingly being engineered to meet these challenges as integrated components of the overall mine design.

One of the key advantages of conveying lies in its ability to provide continuous, electrified transport. Compared with truck haulage, conveyors can significantly reduce fuel consumption, operating costs and associated emissions, particularly over long distances and high volumes. This makes them an attractive option for mining regions investing in new infrastructure and seeking to improve the sustainability of their operations.

As conveying distances and installed power increase, however, the performance of the drive system becomes a critical factor. Conventional drive arrangements, typically based on high-speed motors and gearboxes, can approach their technical and practical limits in large-scale applications. This has led to growing interest in gearless drive technology, which replaces the traditional drivetrain with a slow-running synchronous motor directly coupled to the conveyor pulley.

By eliminating the gearbox, gearless drives simplify the mechanical system and reduce the number of wear components. This results in lower maintenance requirements, improved reliability and reduced downtime — particularly valuable in remote or difficult-to-access locations. In addition, the absence of gearbox losses and the high efficiency of synchronous motors contribute to improved overall energy performance, especially under partial load conditions where conveyors typically operate.

Modern gearless drive systems are also closely integrated with digital control platforms, enabling precise control of conveyor speed, optimised load sharing and advanced condition monitoring. These capabilities support predictive maintenance strategies and help operators maintain consistent performance across the entire material handling chain.

From a system perspective, advances in conveyor design are equally important. The use of horizontal curves, for example, allows conveyors to follow natural terrain and reduces the need for multiple transfer points, improving system availability and lowering maintenance requirements. Fully enclosed conveying solutions such as pipe conveyors can further support environmental performance by minimising dust emissions and material spillage.

While gearless drives are not required for every application, their value becomes clear in high-capacity, long-distance and high-lift scenarios where reliability, efficiency and lifecycle cost are critical. In these cases, a project-specific evaluation often shows that reduced operating expenditure and improved system availability can offset higher initial investment.

As mining development continues to accelerate across the Middle East, the need for efficient, reliable and future-ready material transport solutions will only grow. In this evolving landscape, conveying systems—supported by advanced drive technologies — are increasingly being recognised as a strategic enabler of large-scale project success. By reducing reliance on conventional haulage and aligning with broader goals around efficiency and infrastructure optimisation, they offer a practical pathway for operators looking to build resilient operations that can meet the demands of both today’s projects and those still to come.

For more information on TAKRAF Group’s conveying systems capabilities, visit www.takraf.com