Global LNG Supply Could Shrink, Shell Says — WSJ

By Joe Stonor and Adam Whittaker

Shell expects global physical cargos of liquefied natural gas to be at similar levels as last year before returning to growth in 2027, it said in an annual report on the LNG market today.

Before the war, the British energy company had expected global sales of LNG-a fuel key to China's industrial expansion, as well as European and Asian energy supplies-to increase significantly this year. This new, more muted outlook is now the best-case scenario: It assumes traffic through the Strait of Hormuz recovers this summer.

If disruption drags on through the rest of the year, we could see a rare annual supply contraction, Shell said.

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