LONDONSINGAPORE, Feb 14 Reuters Global demand for liquefied natural gas LNG is estimated to rise by more than 50 by 2040, as China and countries in South and Southeast Asia use LNG to support their economic growth, Shell said in an annual report on Wednesday.

Global LNG trading rose by 1.8 to 404 million metric tons in 2023, Shell, the world39;s largest LNG trader, said in its 2024 LNG outlook.

It also said prices and price volatility were above historic averages, constraining economic growth, and that the market was still structurally tight because of the reduction in Russian supplies to Europe following the Ukraine war and limited supply growth.

Shell said demand for natural gas has peaked in some regions, including Europe, Japan and Australia in the 2010s, but it continues to rise globally, and is expected to reach around 625685 million tons per year in 2040, according to the latest industry estimates.

This year39;s forecasts are slightly lower than Shell39;s 2023 estimates for a global demand increase to 700 million tonnes by 2040.

The report said China, which in 2023 overtook Japan to reclaim it status as the world39;s top LNG importer, will continue to drive global LNG demand.

China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas, said Steve Hill, Executive Vice President for Shell Energy.

With China39;s coalbased steel sector accounting for more emissions than the total…