Qatar dismissed new LNG deals with Egypt

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This raising fears that a diplomatic row between the countries can harness regional trade in energy, the sources said.

Qatar is top LNG producer, supplies around 60% of Egypt's LNG, but the relationship suffered after the fact, like last month imposed sanctions on gas-rich states of the Persian Gulf, accusing it of supporting terrorism. Doha denies the charges.

Since then, requests by at least two companies to delivery additional LNG from Qatar to Egypt have been rejected without explanation, according to sources familiar with the negotiations.

One of the trade sources said, referring to a diplomatic standoff between Qatar and Egypt, Qatar's reluctance to expand LNG trade with Egypt contrasts with a growing desire to sell more than trade goods to Europe. The representative of Qatar Petroleum denied this.

Any decision to restrict the sales of new LNG to Egypt would be largely symbolic, as the country has already blocked most of their deliveries to 2017 from Qatar and other producers.

And some traders suggested that the producers of Qatar just came up against the usual limitations of shipping or delivery for refusing to sell goods.

A second source familiar with the negotiations said, that complex logistical problems associated with the lack of money in the country, may have led Qatar to reduce its participation on a strictly commercial basis.