Shell expects gas stocks in European storage to fall to 30% or even lower by the end of the heating season, the company's head Wael Sawan said during a teleconference.
“In Europe, of course, the low storage levels that we are seeing right now are only about 55%, which is low compared to the average for the last 5 years and could ultimately be about 30% or even lower“, he said, adding that the suspension of gas supplies from Russia will also lead to an increase in gas demand in the region.
At the same time, the situation in the Asian gas market is slightly better than that in Europe due to a warmer winter, better gas storage conditions and price sensitivity, added Savan.
At the same time, in 2024 there were very few new LNG supplies in the world, so the market growth was only about 1% compared to its total volume of 400 million tons, the Shell chief noted. The company expects LNG supplies to grow at the same slow pace in 2025, while latent demand for gas increases.
“Therefore, I cannot afford the luxury of assessing the LNG market only in the next 2 or 3 years. We have to look at it in 10, 20, 30 years. This is a very stable market, which will grow by 50% or more between now and 2040,“, the top manager concluded.