Egypt’s Potential Natural Gas Surplus Could Feed Global LNG Glut – Outlook Positive
Egypt faces a possible over-abundance of natural gas after two Israeli companies proposed a $15 billion supply deal, raising the prospect that the Arab nation may turn its surplus into liquefied natural gas and export it to a market currently glutted with LNG.
Egypt was already expecting to become self-sufficient in natural gas by the end of this year with the start of Eni SpA’s giant Zohr field, Oil Minister Tarek El-Molla said last month. Noble Energy Inc. and Delek Drilling-LP said Monday they plan to supply around 64 billion cubic meters of gas over 10 years to Egypt’s Dolphinus Holdings Ltd. from Israel’s Tamar and Leviathan reservoirs, in a $15 billion export arrangement.
The most populous Arab country has facilities to turn gas into super-chilled LNG, which can be exported by ship. The global LNG oversupply is unlikely to end before the mid-2020s, the International Energy Agency forecast in October.
On the technical charts, Natural gas is trading in the positive zone and is testing the 9 day EMA. The market is trading below the 20 day, 50 day, 100 day, and the 200 day moving averages. The RSI is at 39.24 and the MACD is ready to make a positive crossover above the signal line.
Buy stop at 2.625, Take profit at 2.648, Stop loss 2.592