The U.K.'s fears of over reliance on imports of natural gas in the future are overdone because supply of the fuel will remain ample and secure, said Royal Dutch Shell PLC Chief Executive Peter Voser Tuesday.
The focus of the U.K.'s fears - supply from Russia - made up less than 5% of total supply in 2008 and will be a similar proportion in 2020, he said. Shipments of liquefied natural gas and pipeline imports from Norway will be a much larger proportion of U.K. supply, he said.
"The U.K.'s energy challenge is acute. This raises the question why it can afford to dismiss natural gas as a future source of energy," particularly because it contains less carbon than other fossil fuels, Voser said.
The U.K. is likely to become the first port of call for ships carrying LNG from places like Qatar or Nigeria, particularly because the U.S. will need less of the fuel as domestic gas production booms, he said. By 2020 LNG could provide 25% of the U.K.'s gas needs, he said.
"There are huge unconventional gas resources to be unlocked in many countries," which could transform European gas supply as it has done in the U.S., he said.