Gas Supply To Remain Stable
BMI View : Despite Noble's decision to downgrade its targets for Israeli gas sales due to the ongoing conflict in Gaza, we do not anticipate a prolonged threat to gas supplies.
In its third quarter guidance, Noble Energy indicated that it anticipates a decline in natural gas sales to Israel, due to the ongoing conflict in Gaza. In the first two quarters of 2014, the company's Israeli gas sales averaged 6.2mn cubic metres per day (mcm/d). It is unclear how far these volumes are expected to fall, although we believe the amount to be relatively small.
Noble currently supplies gas from offshore fields via subsea pipeline to an onshore terminal at Ashdod. Any disruption to the supply from Noble could be cause for concern, as these offshore fields supply all of Israel's domestic gas consumption. However, the risk of disruption is minimal.
|Tight Supply Picture|
|Israel Gas Consumption And Production (bcm)|