- Warns of more volatility if Russia hit by sanctions
- Calls on Europe to be ‘proactive’ on supply security
- LNG cargoes likely to continue to come to Europe
Shell is prepared to do what it can to bring more LNG to Europe to help mitigate the impact of any potential sanctions on Russian energy, but warned of an “incredibly” tight market and called on Europe to be “proactive” in managing its gas supply security, reports Platts.
Russia-Ukraine standoff
There remain concerns in the European gas market that Russian gas supplies could be disrupted in the event of an escalation in the standoff between Moscow and the West over Ukraine and any potential imposition of sanctions against Russian energy.
“If harsh sanctions are applied, I think undoubtedly there will be volatility,” Shell’s head of integrated gas, Wael Sawan, said at the launch of the company’s latest annual LNG market outlook.
“And we stand ready to look at options to be able to bring some of the unparalleled LNG scale that we have globally to be able to supply Europe as and when we can,” Sawan said.
“But it’s important to recognize that it is an incredibly tight supply-demand market at the moment, and so those cargoes are not freely available,” he said.
Spot LNG prices remain at sustained highs after the S&P Global Platts benchmark JKM price hit a record high $56.33/MMBtu in October.
The JKM was assessed at $23.69/MMBtu on Feb. 21, still 275% higher year on year.
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Source: Platts
