Campaign reply - Shell and energy bills

Thank you for contacting my office. I very much appreciate you getting in touch about energy supply in light of recent events in Ukraine.

Let me start by saying that President Putin has unleashed a full-scale invasion of Ukraine by land, sea and air. This is a premeditated and unprovoked attack, barbaric in execution, on a sovereign democratic state. My thoughts are with the Ukrainian people and their President, whose defiance, courage and patriotism in the face of foreign aggression is inspiring. 

The UK gas market is one of the most liquid and developed in the world and provides security through diversity of supply. Most of the gas supply to the UK comes from domestic production and imports from reliable suppliers like Norway. There are no gas pipelines directly linking the UK with Russia. Although we receive some Liquefied Natural Gas from Russia, we are in no way dependent – less than four per cent was sourced from Russia in 2020. While this is a small proportion of our supply, I know that the Government is exploring options to end this altogether.

In a bid to boost long-term energy independence, security and prosperity, the Government has launched its Energy Security Strategy, which sets out how Britain will accelerate the deployment of wind, nuclear, solar and hydrogen power, while supporting the production of domestic oil and gas in the nearer term. It is important to recognise that while we transition to green energy, producing gas in the UK has a lower carbon footprint than importing it from abroad. Together, these measures will be central to weaning Britain off expensive fossil fuels, which are subject to uncontrollable and volatile prices, and will provide both cleaner and more affordable energy.

Further, the UK will phase out the import of Russian oil and oil products by the end of this year which makes up roughly eight per cent of UK demand. The Government has also announced that it will end all imports of coal from Russia in the same time frame. I welcome that this will give the market, businesses and supply chains more than enough time to replace Russian import. The Government will support businesses through a new Taskforce on Oil to support them to make use of this period in finding alternative supplies.

 

The Government has been clear that we must move away from the little dependence we have on Russian hydrocarbons. However, this must be done step by step working with our European partners. I welcome that the Energy Supply Strategy addresses how the Government will meet the needs of the UK in the short, medium and long term.

Regarding Shell, I appreciate that large multinational companies face many complexities when exiting a market, including efforts to avoid disruptions to market supply. I welcomed the company’s subsequent apology, decision to immediately stop purchasing Russian crude oil, and the halting of their aviation fuel and lubricant operations in the country. I understand that any profits generated from Shell’s remaining Russian oil will go to dedicated funds aimed at helping those affected by the war in Ukraine. It is my understanding that Shell will continue to work with governments on how to manage any potential impact on energy supplies.

Once again, thank you for taking the time to write. If you require any further assistance, then please do not hesitate to get in touch.