Industry

Demand for LNG is forecast to rise sharply. (Image source: Adobe Stock)

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.

Assembly of a TAKRAF conveying system at F’Derick iron ore project, Mauritania.

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

The company's solutions provide real-time visibility into pipeline and facility performance. (Image source: Adobe Stock)

As Saudi Arabia continues to invest in expanding and modernising its energy infrastructure, the demand for advanced pipeline monitoring, leak detection, and asset integrity solutions has never been greater

Petrofibre Arabia Equipment Company Ltd. is proud to contribute to this transformation by delivering innovative technologies and engineering solutions that enhance operational safety, environmental protection, and asset reliability across the Kingdom.

Headquartered in Dammam, Petrofibre Arabia specialises in fibre optic sensing technologies and integrated monitoring systems designed for critical infrastructure applications. The company supports operators, EPC contractors, and industrial clients with solutions that provide real-time visibility into pipeline and facility performance.

One of the key challenges facing pipeline operators is the early detection of leaks, third-party interference, and abnormal operating conditions. Traditional monitoring approaches often rely on periodic inspections or localised instrumentation, which may not provide continuous coverage over long distances. By leveraging distributed fibre optic sensing technologies, operators can monitor extensive pipeline networks in real time, enabling faster response times and improved risk management.

Petrofibre Arabia's portfolio includes leak detection systems, distributed acoustic sensing (DAS), distributed temperature sensing (DTS), distributed strain sensing (DSS), and integrated monitoring platforms. These technologies help clients improve operational efficiency while supporting compliance with international standards and industry best practices.

Beyond technology supply, the company provides engineering support, system integration, commissioning, testing, training, and long-term technical services. This end-to-end approach ensures that monitoring systems are effectively implemented and aligned with client operational requirements.

Saudi Arabia's Vision 2030 continues to drive investment in energy, industrial, and infrastructure projects. As these projects become increasingly digitalised, intelligent monitoring solutions will play a critical role in ensuring reliability, sustainability, and operational excellence.

Petrofibre Arabia remains committed to supporting the Kingdom's industrial growth by delivering proven technologies, local expertise, and responsive customer support. Through strategic partnerships and continuous innovation, the company is helping clients safeguard critical assets while building a more connected and resilient energy future.

,The rig is the first of six next-generation island rigs under a US$1.54bn drilling services contract. (Image source: ADNOC Drilling)

ADNOC Drilling has delivered AD-300, the first AI-enabled, fully automated walking island rig, to be followed by a further five next-generation island rigs under a US$1.54bn drilling services contract awarded by ADNOC Offshore in 2024-2025 

Delivered nearly three months ahead of schedule, the rig deployment marks the advancement of ADNOC’s autonomous operations, accelerating the rollout of the six-rig programme. The rig is deployed offshore on one of ADNOC’s artificial islands.

Standing 50 metres tall, and weighing around 2,000 tons, AD-300 combines advanced automation, digital systems and hybrid power capability, with the option to connect to the grid, enabling more efficient and lower-emission operations. Its automated walking capability allows it to move seamlessly between well locations without dismantling, while automation systems, such as automated pipe handling and AI-enabled monitoring, help minimise personnel exposure in complex operating environments, thereby improving safety. Integrated data systems provide real-time operational insights for performance optimisation and predictive maintenance. It enables faster and more consistent offshore well delivery as ADNOC seeks to up production capacity to 5mn bpd by 2027.

Abdulla Ateya Al Messabi, ADNOC Drilling CEO, said, “The delivery of AD-300 marks a step-change in how we execute large-scale, technology-enabled energy development. By integrating automation, artificial intelligence and robotics at scale, we are enhancing safety, improving efficiency and delivering more consistent, predictable performance. As the first of six rigs under this program, AD-300 demonstrates our ability to deliver complex, high-value assets ahead of schedule, accelerating revenue generation while supporting ADNOC’s production capacity expansion and reinforcing the UAE’s leadership in advanced energy solutions.”

Tayba Abdulrahim Al Hashmi, ADNOC Offshore CEO, added, “At a time when the world needs reliable energy at scale, the UAE stands ready to supply global customers. AD-300 and our next-generation island rigs are accelerating our growth, expanding ADNOC's production capacity and delivering long-term value for our stakeholders and the nation.”

The remaining rigs are scheduled for delivery in 2027, creating one of the world’s most advanced rig fleets and boosting ADNOC’s upstream growth ambitions.

The IEA in its latest monthly oil market report notes that the UAE’s crude oil production rose by 230,000 bpd in May to 2.8mn bpd, around 835,000 bpd short of pre-war conflict levels of over 3.6mn bpd. Dr Sultan Ahmed Jaber, Minister of Industry and Advanced Technology and Group CEO of ADNOC has previously commented that the UAE can restore production to pre-war levels within two weeks. Significant investments in storage and alternative pipelines and shipping routes have enabled it to maintain exports at relatively high levels despite the regional disruption.

The IEA comments that the UAE has emerged over the past decade as one f the most expansion-oriented producers in the Middle East, noting the steady increase in oil production capacity since 2016 to nearly 4.4mn bpd by 2026 and forecasting that total production could increase by 730,000 bpd to 5.2mn bpd by 2030. Further increases could be on the cards following the UAE’s exit from OPEC, which has freed it from OPEC production quotas.