Shell PLC (LSE:SHEL, NYSE:SHEL) is talking to the government to try and gain approval for a major North Sea gas project, arguing the country and Europe face a "tough winter" without supplies from Russia.
The FTSE 100 group's new chief financial officer, Sinead Gorman, said the company is looking to engage with Downing Street to try and “get the approval processes going” for Jackdaw.
Jackdaw, a gas field about 150 miles east of Aberdeen that has never been drilled, is one of the projects the company is actively pursuing.
Shell was denied permission to build the project last year because of environmental concerns, but the company has submitted new plans that claim it could provide 6.5% of Britain's gas needs by 2025.
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Chief executive Ben van Beurden said while there is "no silver bullet" to end the energy crisis, initiatives like the proposed Jackdaw field development would help.
Shell reported a record US$9.1bn profit for the first three months of 2022 on the back of surging oil and gas prices, spurred by the Ukraine conflict, provoking calls for a windfall tax to be imposed by the UK on the industry.
Beurden, however, believes Europe’s largest energy company can help bring prices down by investing in production and hinted that a windfall tax could force it to scale back its £25bn investment plans.
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In addition to increasing imports of liquefied natural gas (LNG), Beurden opined Europe will also need to improve energy efficiency and invest in renewable energy schemes such as wind farms.
The continent must increase domestic gas production, as well as import more LNG from places like North Africa and Qatar, if it is to survive without Russian gas, Beurden said, according to a Telegraph report.
Shell also wants to proceed with the Pearce and Penguins gas projects in the North Sea which have been delayed by pandemic disruptions in China, though Greenpeace and others are calling for an end to all new oil and gas extraction in the North Sea.
“We are acutely aware of all the difficulties that high energy prices bring, particularly, of course, for the more vulnerable customers. It is very painful for a lot of people," said Beurden.
"Starting up Pearce, bringing on Jackdaws project, Penguins, etcetera, all these things will help bring new supply into the UK and therefore alleviate market conditions."
Ahead of its annual general meeting (AGM) later this month the company is holding an ESG even in London next Tuesday.