The head of the Greek company Atlantic SEE LNG Trade has said it is now more difficult to obtain long-term liquefied natural gas deals from the US since the disruption arising from the Iran war, Bloomberg reported.
While a trend of increased Asian competition with European buyers for spot cargoes from North America is now already a given, the comments show that European struggles appear to be extending to long-term supply deals also.
The article said the more intense competition is making US firms reluctant to sign 20-year contracts that Atlantic SEE is seeking, as it tries to develop a role for Greece as a regional LNG hub.
"US suppliers have become reluctant to commit to a price for a long period of time," Chief Executive Officer Alexandros Exarchou told Bloomberg in an interview.
"This is a different situation from six months ago when they were gasping for such long-term agreements."
One reason offered by the article for US hesitation, is uncertainty over how prices will evolve after damage to the world's biggest LNG export terminal in Qatar, which is expected to take several years to repair.
Some US suppliers are even offering incentives to reduce the size of existing contracts, the story said.
Some forecasts have predicted that global LNG prices will slump around the end of this decade when a pipeline of new production capacity in planning or under construction begins to operate.
The size of capital commitments needed to build and finance US LNG projects may also make it more difficult for smaller buyers to obtain long-term contracts with sellers in the US.
Atlantic SEE, a joint venture between Aktor Group and Greek state gas supplier Depa Commercial, entered into a deal with Venture Global in November to import 4 billion cubic meters of LNG starting in 2030, the Bloomberg article said.
Most of this will go to Greece's neighbours with 1 billion cubic meters destined for Albania and 0.5 billion for Bosnia-Herzegovina. The company is also seeking to enter deals with Romania in the coming weeks, which could raise supply agreements to 3.7 bcm per year.
If it reaches deals with Bulgaria and Ukraine this year also, Atlantic SEE will try to obtain more US LNG contracts to fulfil those, which would raise volumes handled to 8 bcm. The company will look at exploring supply deals with Serbia, Croatia and North Macedonia, Exarchou said.
He said that while the Venture Global deal insulated Atlantic SEE from volatility, the price for gas under 20-year contracts has risen sharply.
"We're discussing for additional quantities from various suppliers in the US," said the CEO. He believes spot prices will rise sharply from September.
He also voiced concern that the EU had not adopted measures to head off any supply shortages next winter, with reserves now less full than they would usually be over the warmer months when stocks are replaced.