Competition for liquefied gas supplies between Europe and Asia will maintain tightness across the global LNG market until 2025 and beyond, according to UK supermajor Shell.

LNG is becoming “a core energy supply source for Europe”, causing structural shifts in the global supply and demand balance, Shell said in its LNG Outlook 2023 report.

After a drastic decline in Russian exports of pipeline gas in the months following the invasion of Ukraine, European countries turned to LNG to plug the gap.