Bloomberg: Mideast to cut LNG exports to Europe for first time in 20 years

Middle East liquefied natural gas producers, the biggest suppliers of the fuel to Europe, are set to cut exports for the first time in 20 years amid rising local demand for power generation.

Qatar, Oman, Yemen and Abu Dhabi, which supply 40 percent of the world’s LNG, exported at 96 percent of capacity last year, according to the International Group of Liquefied Natural Gas Importers, or GIIGNL, a Paris-based lobby group. That will fall to about 94 percent in 2012, according to data compiled by Bloomberg. Combined shipments from the region’s four producers of the chilled gas have risen every year since 1992, according to the U.S. Energy Information Administration.

The combination of reduced supply and rising demand in the Middle East, as countries build import terminals to meet their power needs, may accelerate the diversion of supplies from Europe to more lucrative markets. Japan, the biggest LNG buyer, is paying a record price to attract LNG after shutting all 54 of its nuclear plants following the earthquake and tsunami in March last year that caused the Fukushima Dai-Ichi disaster.  MORE