Shell does not yet see the impact of the situation in the Red Sea on the LNG market – Kommersant

The situation with the shelling of ships in the Red Sea has not yet affected the liquefied natural gas (LNG) market, says Shell CEO Wael Sawan. According to him, LNG prices are now stabilizing again.

“We don’t currently see a significant amount of interruption in LNG supplies, because in reality, especially with a portfolio like ours… We are able to optimize and implement swaps within our portfolio,” said Mr. Sawan (quoted by Interfax).

He did not give forecasts for the rest of the year, as uncertainties remain regarding demand in Asia. At the same time, the head of Shell is confident that LNG consumption will grow. Wael Sawan added that several Asian countries, including Vietnam and the Philippines, are recording a decrease in gas production, so they have started importing LNG.

Shelling of international ships in the Red Sea increased in December 2023. This happened against the backdrop of a war between Israel and the Palestinian movement Hamas, which is supported by the Houthis. Since January 12, the United States has already launched several strikes on Houthi positions in Yemen. By data According to the World Trade Organization, changes in shipping routes due to the situation in the Red Sea led to a drop in wheat supplies through the Suez Canal by almost 40% in two weeks. Bloomberg reportedthat Russian tankers began to avoid this route.

About the development of the conflict – in the publication “Kommersant” “Voters dispersed to their respective Palestines”.

Laura Keffer