Alexandros Exarchou warns of difficulties in long-term LNG liquefied natural gas deals from the US and predicts rising prices.
The difficulties that have arisen in securing long-term liquefied natural gas (LNG) contracts from the US were outlined by Atlantic SEE CEO Alexander Exarchou, speaking to Bloomberg, attributing them to the turbulence caused by the war in Iran on the international energy market.
Exarchou: Changing climate in the LNG market
As Exarchou said, American suppliers have now become more cautious and appear reluctant to commit to specific prices for a long period of time. “The situation is different from six months ago, when they were looking for such long-term deals,” he said.
According to him, the uncertainty about the price path, following the damage to the largest terminal LNG export terminal in Katar, has led some US suppliers to even offer incentives to reduce volumes under existing contracts.
The CEO of Atlantic SEE recalled that the company, which is a joint venture between the Aktor Group and DEPA Trading, has already signed a 20-year agreement last November with Venture Global Inc. to import 4 billion cubic meters of LNG per year from 2030, with most volumes destined for markets in the region.
At the same time, Exarchou revealed that the company is in discussions for additional LNG volumes from various suppliers in the US, expressing the view that spot prices will register a significant rise from September onwards.
