Intense competition from Asia could make it more difficult to secure new LNG quantities from international markets without paying an extremely high premium, warned AKTOR Group President and CEO Alexandros Exarchou, speaking to Politico. As Mr. Exarchou emphasized, AKTOR Group is finalizing a 20-year supply contract with American LNG giant Venture Global for the supply and sale of natural gas to Albania’s Albgaz starting in 2030.
Once this contract, along with other long-term agreements, is completed – likely by the end of May – AKTOR Group will attempt to secure additional shorter-term LNG supply and trading contracts, which Mr. Exarchou considers necessary as the war in Iran exerts enormous pressure on the global energy market, noting however that the undertaking will not be easy.
He added that this year will be particularly difficult to secure significant LNG quantities from the US at reasonable prices, as he cannot rule out the possibility of Asian companies making higher financial offers to LNG suppliers, amid increasing competition that has led an ever-larger share of LNG cargoes to be diverted eastward.
Alexandros Exarchou: We must maintain balance in LNG and natural gas sources we procure
As Mr. Exarchou noted, the result of this new situation may be that Europe will have to accept higher prices for the immediate future, as the problems Qatar already faces due to the war are compounded by the ban on Russian gas and the limitation of LNG quantities that the American market can provide today. Thus, the result is that there are no other significant supplier sources.
The AKTOR Group head indicated he is optimistic about securing a new preferential, long-term supply agreement for Europe for American LNG quantities expected to be available from 2030. However, he noted this will also depend on structural changes brought by the closure of the Strait of Hormuz.
Mr. Exarchou commented that the long-term prices the Group currently offers are very cheap and noted that, regardless of what happens in the future, they will remain competitive.
While stating that agreements with the US represent only one aspect of a broader diversification strategy, he noted that Europe must ensure it does not depend on any single energy source or supplier. Indeed, he noted that “energy can be used as a weapon against Europe, which is why we must maintain balance in the LNG and natural gas sources we procure.”
