Shell ready to divert LNG cargoes towards Europe if Ukraine crisis hits Russian gas supplies: CEO

Shell, the world's largest trader of LNG, is ready to redirect some of its global LNG trading volumes towards Europe if an escalation in the stand-off between Russia and the West over Ukraine hits Russian gas supplies to the region, Shell's CEO Ben van Beurden said Feb. 3.

Shell has a lot of flexibility and "agility" in its LNG trading portfolio which it can use to direct LNG cargoes away from Asian markets into European markets, van Beurden said on a quarterly earnings call with journalists.

"Europe has never really suffered significant disruptions from Russia even in very troubled geopolitical times. But if there are disruptions, possibly due to sanctions or otherwise, of course we will step in and do whatever we can to keep supply ... continuing to operate assets in Europe as best as we can or diverting LNG cargoes into Europe as they have done last winter," van Beurden said. "....We are in a position to help unlike many other companies."

Russia, which supplies around a third of Europe's gas, has amassed around 120,000 troops near its border with Ukraine but Moscow denies any plans to invade.

Tensions between Russia and the West over Ukraine have contributed to high European gas prices in recent weeks over concerns that Russian flows could be disrupted if there is any escalation of the crisis.

Van Beurden said Shell's operations in Russia have so far seen no impact from the rising tensions.

Shell's traded LNG volumes averaged 16.72 million mt during the fourth quarter of 2021. Global LNG trade in 2020 was estimated at around 356 million mt by industry group GIIGNL.