Shell warns that global liquefied natural gas (LNG) supply may contract this year if Strait of Hormuz disruptions persist. The company’s annual LNG report states that continued turmoil could trigger a rare annual decline in supply.
Shell projects 2026 volumes may remain flat compared to the 422 million metric tons sold in 2025. The Strait of Hormuz serves as a critical chokepoint for approximately one-fifth of global monthly LNG supply.
Current shipping disruptions have already lowered growth forecasts for 2026. Shell anticipates a return to growth in 2027, provided shipping routes normalize. The energy major also forecasts a 65% increase in global LNG demand by 2050.