I am a big ESG supporter, but both feet on the ground says Israel is close to the Europe market depsparate to distance themselves from Russian suppliers. Israel also can defend militarily their assets, so that risk will be managed in spades. It also sticks the boot into Iran too.
So its all about markets and market access. Oh, and publicity too. Oh, and supportive Governments. Oh, and supported by an edumacated public. Oh, and meeting timelines in, well, a timely way. Oh, gas quality too..I assume there will be very likely condensates from the Israeli field rather than N2 and CO2 from ESG's. oh, and some certainty about local ETS and consequently electricity markets that someone has comfort to invest in large gas power stations.
In the end it is just CH4, a commodity, and if there is enough of it cheap enough at the ESG farm gate, it will have value.
Sorry that this is a sort of nothing post, but I am in enough stocks driven by technical experts who are only apprentice business men. ESG seems to have some stars, but I wonder how much difference there is between them knowledgewise and their performance as a focussed team. I get the sense they have been half a lap behind events in the past. At the moment this is more important issue to me than the resource.
All the issues I raised above are just lead in the saddle bags and a money/time thing to resolve. I just hope they have strategised this thing to death.
ESG Price at posting:
80.5¢ Sentiment: Hold Disclosure: Held
