16th Feb 2023 10:07
(Alliance News) - Shell PLC on Thursday said that increased demand from Europe for liquefied natural gas, which sent prices flying in 2022, will drive competition between the continent and Asia.
The London-based oil major said European countries imported 60% more LNG in 2022 than in 2021, at 121 million tonnes. This was due to Russia's invasion of Ukraine and followed imposed sanctions on the gas-exporting country.
It added that a 15 million tonne decline in Chinese imports helped Europe to secure enough gas and avoid shortages.
Shell said that Pakistan and Bangladesh in 2022 imported fuel oil to minimise power supply shortages, while India resorted to using more coal.
"Europe's rapidly rising appetite for LNG pushed prices to record highs and generated volatility in energy markets around the world. With reduced Russian pipeline gas, LNG is becoming an increasingly important pillar of European energy security, supported by the rapid development of new regasification terminals in north-west Europe. In contrast, China is evolving from being a rapidly growing import market to playing a more flexible role with an increased ability to balance the global LNG market," Shell said.
"Diverse new technologies to reduce emissions from gas and LNG supply chains will help to consolidate its role in the energy transition. And there is growing industry focus on the development and deployment of decarbonised gases – including renewable natural gas, synthetic natural gas, hydrogen and ammonia – to deliver more sustainable energy security in the future."
Shell shares were 0.5% lower at 2,566.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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