NEW YORK (TheStreet) -- I was talking today to Jim Cramer about the blockbuster natural gas deal that was signed between Russia and China. The 30-year, $400 billion deal to ship Russian gas via pipeline to Eastern Chinese cities changes everything.
First, it changes the calculus of U.S. relations with Russia and China. Now that the two superpowers are connected much more closely through energy supply, the U.S. will find both nations less easy to influence. Their combined economic cooperation makes each stronger.
But from a global energy standpoint, the deal couldn't be more important. Russia's Vladimir Putin used the opportunity of this Chinese summit to complete a deal that has been threatened for almost 10 years, delivering the concessions needed to find another very stable market for Russian gas exports, which will in turn make them far less reliant upon Eastern Europe and EU sales.
That, in turn, gives them far greater leverage into the Ukraine outcome and with a ready customer to the East; they are far more capable of turning the spigots down in the winter to the West in order to accomplish political goals.
The total deal on gas to China will ultimately amount to more than 60 billion cubic meters a day, or almost half of the volume that Russia shipped to all of Europe in 2013. With that kind of alternative market, there is going to be a frantic thrashing in European capitals to quickly find reliable sources of natural gas outside of Russian pipes.Some massive investment opportunities will arise from this. The first that occurs to me is Noble Energy (NBL), which just had its major partner in the Levant basin, Woodside Petroleum (WPL) walk away. I believe Woodside is kicking itself right now as the Chinese/Russian gas deal has made Leviathan natural gas in the Mediterranean worth a heckuva lot more than it was 24 hours ago.
I believe that instead of devaluing the Leviathan project, Noble will have multiple suitors at its door looking to replace Woodside as a partner. One guess I have is Total (TOT), the French giant that has a terrific record in Middle East markets and a still good relationship with the Israeli government. Other quickly ramping LNG sources in Asia and Africa will also be more valuable in light of this deal. One that comes to mind is the Mozambique LNG project being undertaken by Anadarko (APC). I talk more about this mega-deal and its implications with Jim in the video above.
At the time of publication, Dicker was long Noble, although positions may change at any time. Follow @dan_dicker This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. >>Read more: Netflix Intends to Use House of Cards to Take Over the World
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