Eni Discovers Largest-Ever Gas Field, Threatens Israeli Exports

Keith Kohl

Written By Keith Kohl

Posted August 31, 2015

The natural gas market is alive today with the news of a new natural gas deposit.

Italian energy company Eni SpA (NYSE:E) just announced its discovery of a natural gas deposit in the deep water area of the Mediterranean along the northern coast of Egypt.

The company claims, with preliminary numbers, that it could be the world’s largest natural gas deposit found to date and could satisfy Egypt’s natural gas demand for decades.

As impressive as this discovery is, it does not bode well for Israel.

You see, a partnership between Noble Energy (NYSE:NBL) and Delek Group (TLV:DLEKG) have discovered two large natural gas deposits of their own in Israeli waters. The two companies have been in negotiations with the Israeli government for long-term contracts to sell the supply to Egypt.

Unfortunately, political regulatory uncertainty has kept these deals from being finalized. And now it’s taking its toll on the country.

“…while Israel has been ‘sleep walking’ and delaying the final approval of the gas outline… the world is changing in front oIsraeli Energy Minister Steinitzf our eyes,” said Israeli Energy Minister Yuval Steinitz.

Already the glut of natural gas is causing not only economic, but political upheavals all over the world.

On one hand, there is the benefit of LNG exports quickly being developed in the U.S. and Canada, both of which are aimed at supplying Europe.

On the other hand, this and other new suppliers coming into the market hurts status-quo natural gas powers like Russia, which has had a thug-like hold on several European and Middle Eastern countries for decades.

Israeli officials have been dragging their feet on this export deal, and the discovery in Egypt lowers the possibility that the deal will be profitable.

Noble and Delek will need to begin business quickly before Eni can gain a foothold of its own and steal away market share in Egypt and North Africa.

To continue reading…

Click here to read the Reuters article.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basicCheck us out on YouTube!

A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

Angel Publishing Investor Club Discord - Chat Now

Keith Kohl Premium



Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.