Shell 2026 LNG trade flat amid Hormuz disruption

Global liquefied natural gas trade is expected to be flat in 2026 compared to last year, a significant departure from a decade of growth, due to a major supply disruption in the Middle East, according to a new industry outlook. Energy major Shell, the world's largest LNG trader, published its annual LNG Outlook 2026 on Tuesday, projecting that global demand for the super-chilled fuel will still rise sharply by 2050, driven largely by Asian energy needs.

The report states that global LNG trade reached 422 million metric tons in 2025 and was expected to increase this year. However, a conflict in the Middle East has severely disrupted tanker traffic through the Strait of Hormuz, a crucial shipping chokepoint, temporarily shutting in roughly one-fifth of the world's monthly LNG supply. This has driven up Asian spot prices, which rose above $20 per million British thermal units at the peak of the crisis.

Shell said the market has shown resilience, with the impact partially offset by increased output from new liquefaction facilities in North America, stronger performance at existing plants, and slower LNG imports in Asia. The company noted that if shipping through the Strait of Hormuz...