Bloomberg: LNG Takes Off in Gas-Rich Mideast as Conflict Thwarts Pipelines

Pipelines are a cheaper way to deliver natural gas than tanker ships. They’re also easier to blow up.

That’s one reason countries in North Africa and the Middle East are going full steam ahead on sea transport. They also want diversity of supply. Middle Eastern imports of liquefied natural gas rose 31 percent last year as deliveries to Kuwait, Dubai and Israel increased at the fastest pace in four years.

The fuel -- natural gas chilled to a liquid for transport - - is in demand as electricity usage surges for growing populations and industries. The Middle East and North Africa will spend $120 billion on gas-fired power plants by 2035, more than either China or the 28 member states of the European Union, according to the International Energy Agency. Strife between nations such as Morocco and Algeria have made pipelines pawns in political power plays as well as increasingly attractive targets for sabotage.

“There is no question that pipeline gas is cheaper than LNG, but we can’t rely on a single source for natural gas,” Morocco’s Minister of Energy & Mines Abdelkader Amara said. “It’s a strategic decision.” MORE