(Bloomberg) --
Shell Plc is ready to supply extra natural gas to Europe should an escalation of the standoff over Ukraine reduce flows from Russia.
The offer from one of the world's biggest liquefied natural gas traders will bring some respite for Europe's policymakers. The European Union has been talking to exporters including Qatar and Azerbaijan for more supplies, while the U.S. has also been scouring the globe, including approaching China, about emergency shipments to the continent. But Russian volumes are so large that they're practically irreplaceable.
Diverting LNG cargoes from Asia to Europe could be an option, Shell Chief Executive Officer Ben Van Beurden said. Higher arrivals of the liquefied fuel -- and a mild winter -- have already helped halve European gas prices from a December record. But this could easily reverse if Asian demand picks up again, pulling LNG cargoes away from Europe.
Russian gas makes up over a third of Europe's demand, and shipments have held up even during the Cold War and in the aftermath of the annexation of Crimea. Moscow has also repeatedly denied it plans to attack Ukraine, but Europe is not taking any chances.
“So far Europe has never really suffered significant disruptions from Russia even in very troubled geopolitical times” but if there are “disruptions because of sanctions or otherwise of course we will step in to keep Europe supplied,” Ben Van Buerden said.
Europe has capacity to receive more cargoes through its LNG terminals, EU Energy Commissioner Kadri Simson said Wednesday. LNG arrivals and Europe's remaining gas stockpiles -- though they are at the lowest on record for this time of the year -- “will protect us against major security of supply problems,” she said.
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