Delek and Noble Energy, Inc. (NYSE:NBL) are currently mulling over plans to export the gas from Tamar and Leviathan via pipeline to Jordan, Turkey, the Israeli-occupied West Bank, and potentially even Egypt. Delek is also currently in talks with Cyprus about developing an LNG terminal on the island nation that would serve markets in Europe and Asia.
Cyprus, which discovered nearly 200 billion cubic meters of gas in its Aphrodite field, hopes to start exporting LNG in 2020 and plans on processing not only its own gas, but also supplies from Israel and possibly Lebanon.
The bottom line
With these major discoveries in Israel and Cyprus, the Mediterranean and Middle Eastern gas trade is likely to undergo a fundamental transformation over the next several years, as countries like Israel emerge as major LNG exporters, possibly joining the ranks of existing heavyweights such as Qatar.
Furthermore, as Israel’s decision highlights, countries around the world that are blessed with vast reserves of natural gas are recognizing the potential of exporting their resources. But in making their decisions, they must weigh the benefits of keeping the gas for their own domestic consumption against the profits that gas exports could generate for their government and citizens.
The article Israel Set to Emerge as Major LNG Exporter originally appeared on Fool.com and is written by Arjun Sreekumar.
Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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