ABSTRACT
The development of global gas markets, and liquefied natural gas (LNG) markets in particular, has political and economic implications for the Middle East and North Africa (MENA) region. This chapter analyzes how a series of factors – slow-down of production growth, rapidly increasing demand, low domestic gas prices, and limited build-up of energy alternatives – have caused the region to go from a significant source of LNG exports to a LNG-importing region. Kuwait and Dubai were the region's first LNG importers. Kuwait has significant associated gas, the production of which is limited by OPEC oil production quotas, while the development of Jurassic gas fields has proved challenging. From a gas perspective, the region is a paradox. It holds significant gas reserves, but many countries are importers. Rapidly increasing demand combined with slower production growth means that most MENA countries are short of gas.
