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Global demand for liquefied natural gas (LNG) is set to rise by 4-5 percent between 2015 and 2030, Royal Dutch Shell plc, Anglo-Dutch multinational oil and gas company headquartered in the Netherlands said in its first LNG Outlook.

The outlook says that from 2020 to 2030 most new LNG demand growth will be driven by: policy, floating storage regasification units (FSRUs), replacing declining domestic gas production, small scale LNG and transport.

By 2020, the size of global LNG trade is projected to grow by 50 percent compared to volumes in 2014, according to Shell.

LNG prices are expected to continue to be determined by factors including oil prices, global LNG supply and demand dynamics, as well as the cost of new LNG facilities.

“As for Southeast Asia, countries such as Malaysia and Indonesia are among the major LNG exporters in the world. But by 2035, the region is set to become a net importer,” said the report. “The rise in demand is driven by economic growth in the region coupled with declining domestic gas supplies in countries such as Thailand.”

This is while the company forecasts the global demand for gas to increase by 2 percent during the mentioned period.

The US is expected to continue to consume more gas than any other country, while Russia is set to stay second, with 2016 gas demand estimated to be 440 billion cubic meters, according to Shell.

“China’s gas demand is expected to increase significantly, reaching 450 billion cubic meters by 2030, up from around 200 billion cubic meters in 2016,” said the report. “This will be met by a mix of conventional and unconventional domestic production as well as pipeline and LNG imports.”

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