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Energy giant %Shell (NYSE: SHEL) is forecasting a 50% increase in global demand for %LiquefiedNaturalGas (LNG) by 2040 as China and other Asian nations use the commodity to fuel their economic growth and clean energy transitions.

Shell is the world's largest LNG trader and published its forecast in its 2024 %LNG market outlook.

The British oil producer said that demand for natural gas has already peaked in many regions, including Europe, Japan, and Australia.

However, use of natural gas continues to rise globally and is expected to reach around 625 to 685 million metric tons per year in 2040.

Shell said that global demand for LNG will steadily rise in coming years as China and other countries in Asia use LNG to support their economic growth and move to cleaner energy sources.

Last year, China overtook Japan as the world's top LNG importer and is likely to dominate LNG demand growth over the next decade, said Shell in its outlook.

China’s government is aiming to cut carbon emissions from industry by switching from coal to natural gas in coming years, notes Shell.

China's 2024 LNG imports are expected to rebound to nearly 80 million tons from 70 million tons in 2023, according to industry forecasts.

Shell’s stock has risen 3% over the past 12 months to trade at $63.58 U.S. per share in New York.