Economic growth in China and other countries in Asia could soon be fueled by oil and natural gas from East Africa, as recent activities from Eni SPA ( E , quote ) and Anadarko Petroleum ( APC , quote ) portend.
Eni Spa, a major Italian oil and gas conglomerate, recently reported the second of two "giant" oil discoveries since October . The new field contains 7.5 trillion cubic feet of gas, while the October discovery of 15 trillion cubic feet of gas was the largest hydrocarbon discovery ever for Eni Spa.
Anadarko Petroleum also holds rights to a number of gas fields in Mozambique, and has also posted recent discoveries off Mozambique's northern coast in the Rovuma Basin.
China has long been active in East Africa, to the point where it was an issue in a recent election. In the 1960s, Mao Tse Tung courted many African nations as part of China's global expansion plans. These days Beijing has more prosaic reasons to invest in East Africa, such as copper ( JJC , quote ).
Any natural gas from Mozambique will find a massive customer base in Asia, particularly China. The U.S. Energy Information Agency projects that natural gas use in Asia will increase by 3.9% annually, from 11.3 trillion cubic feet in 2008 to 31.9 trillion cubic feet in 2035. China is the largest user of energy in the world already, while India, Japan, Indonesia and Vietnam will only increase the demand for natural gas from East Africa.
Investors looking to take advantage of Eni Spa and the energy boom may want to look at the RevenueShares ADR Fund ETF ( RTR , quote ).