Atlantic LNG’s Darlow not concerned with competition from US in LNG market

Atlantic LNG (ALNG) says it is not concerned with impending competition from the US because it is the most reliable LNG producer in the world, ALNG Chief Executive Officer Nigel Darlow told OGJ. He said that when one considers global LNG production, ALNG is the only company that has met all its deliveries over the 15 years the company has been in operations.

He said, “We have developed a global reputation for being a safe and reliable LNG producer. If you look around some of the other LNG producers, you see significant LNG disruptions—in Egypt, Nigeria, Yemen, and Angola—but not so with Trinidad and [ALNG].”

Darlow said the approvals for the construction of LNG plants in the US does not worry him because of the significant cost advantage ALNG has on any company trying to build LNG plants, since it cost ALNG’s shareholders one-fifth of what it now costs to construct a similar facility.

He said the shale gas revolution will not lead to a fall in LNG prices because demand was outstripping supply and even with new supplies projected from the US and Australia, LNG was still a good business to be in.

“The LNG world is ever-changing and becoming even more dynamic and more competitive—with new supply sources. But [ALNG] is extremely well placed to continue to be a leading player well into the future. Global LNG demand outpaces supply and this is set to continue. Global prices are set to remain strong.” Darlow told OGJ.

He added that the Panama Canal would open up the Asian market to ALNG, making it even more lucrative for the company.

Darlow said this year’s first quarter was the best the company had ever performed with a 98% reliability. He explained that the US market was now down to a mere 10% of ALNG’s sales since prices at Henry Hub remain weak.

He said the strategy of selling most of its LNG to the South American market, where prices are as high as in Asia, was a winning strategy that will continue.

ALNG was once responsible for 70% of all of the LNG imported into the US.

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