Shell is concerned that the Iran war could impact long-term confidence in the affordability and security of natural gas supplies, said the company’s president of integrated gas, Cedric Cremers.
“These geopolitical shocks…send the wrong signals to customers around the long-term fundamentals of gas,” Cremers said at the CERAWeek conference in Houston.
The conflict has removed nearly 20% of the world’s energy including LNG from markets after the Strait of Hormuz was effectively closed. Glencore energy head Maxim Kolupaev, speaking at the same panel, said that existing LNG volumes can meet present demand but need to be rerouted.
(Reporting by Curtis Williams in Houston; Editing by Nathan Crooks.)