The report explains how tensions from the US-Iran war have seriously disrupted global liquefied natural gas (LNG) trade, creating shocks across energy markets and shipping routes.

According to Shell’s LNG Outlook 2026, global LNG demand is still expected to grow significantly, rising by about 65 percent to nearly 700 million tonnes annually by 2050, driven mainly by Asia’s increasing energy needs and the shift toward lower-emission fuels compared to coal.

However, the ongoing conflict has temporarily slowed global LNG supply, especially due to the closure and disruption of the Strait of Hormuz, a key transit route for energy exports.

At the peak of the crisis, about one-fifth of global monthly LNG supply was reportedly affected, leading to higher spot market prices and supply shortages in parts of Asia.

While Shell had earlier projected stronger growth for 2026, these disruptions have delayed trade recovery, though analysts expect supply to rebound more strongly from 2027 onwards.

The article further notes that the conflict has damaged infrastructure in some exporting regions, including concerns around facilities in Qatar, while also pushing price-sensitive Asian buyers to reconsider energy sourcing, including switching to coal or domestic gas where possible.

Despite this, Shell maintains that the long-term outlook remains strong due to expanding liquefaction capacity, especially in North America, and growing investments in regasification infrastructure.Emerging demand sectors such as data centres in Asia, LNG bunkering, and power generation in Europe are expected to further support growth.

Shell executives also argue that the LNG market has shown resilience, even under geopolitical stress, and continues to play a stabilising role in global energy security.However, the report emphasises that future growth will depend heavily on infrastructure development and stable international trade conditions.