Reuters: European Ports Set to Lose LNG Supply to Egypt This Summer

Europe is likely to attract fewer liquefied natural gas (LNG) shipments than previously expected this summer as Egypt gears up to become the region's top-paying importer, traders said, potentially increasing gas prices in northwest Europe.

While analysts still expect more LNG to land in Europe this year than in 2014, forecasts will be tempered by increased competition with Egypt, signalling tighter supplies at a time when Dutch authorities move to limit production from Europe's biggest gas field.

That may force gas prices higher in northwest Europe as utilities look to refill depleted inventories, analysts said.

A year-long demand slump in Asia, the world's biggest LNG market, has triggered a rush of sea-borne deliveries to typically overlooked European ports over the past two months, raising expectations that more will come during the summer.

"The start-up of new production plants in Australia and Papua New Guinea, with three more due to start in Australia this year, should mean that more flexible production from Qatar gets diverted into Europe," an analyst at a European utility said. MORE