In an annual report, Royal Dutch Shell sees global demand for liquefied natural gas outpacing conventional gas. Photo by Stephen Shaver/UPI | License Photo
Feb. 20 (UPI) -- The demand for liquefied natural gas, a super-cooled and easily transported energy option, is set to outpace conventional gas, Royal Dutch Shell said.
From Pakistan to Colombia, Shell said the demand for liquefied natural gas is growing. Globally, the company said in an annual review that new LNG supplies on the market were keeping up with demand.
"The outlook for LNG demand is set to grow at twice the rate of gas demand, at 4 to 5 percent a year between 2015 and 2030," Maarten Wetselaar, integrated gas and new energies director at Shell, said in a statement.
Europe is looking at LNG as an alternate form of energy as it tries to break Russia's grip on its energy sector. Most of the gas that Russia sends to the European market runs through Soviet-era pipelines in Ukraine, where geopolitical tensions create energy sector risks.
Last year, the European Commission backed plans by Finland, which gets all of its gas from Russia, to grant $31.5 million to build a terminal for LNG at the Hamina port on the country's southern coast.
In its annual report, Shell said China and India, among the fastest growing economies in the world, are leading the pack in terms of growth in LNG imports. Australia, where Shell has considerable holdings, is among the lead exporters of the super-cooled form of gas.
Liquefied natural gas relies less on pipelines than conventional gas and therefore avoids territorial issues like with Ukraine. Some of the European ports lack the necessary infrastructure for LNG, thought the sector is gaining momentum.
Maritime travel company Carnival Corp. in October signed a deal to power its cruise ships with LNG from Shell.