Leviathan partners to invest $429 million in expansion project

The Leviathan natural gas reservoir is set to undergo a significant expansion. Partners NewMed Energy, Chevron Mediterranean Limited, and Ratio Energies have confirmed an investment of $429 million in front-end engineering design (FEED). This phase will include the preliminary procurement of long lead items essential for the project.

The expansion aims to boost Leviathan's production capacity to approximately 21 billion cubic meters (BCM) per year, addressing the increasing demand for natural gas in the Israeli domestic and regional markets. The project has moved forward following the Energy Ministry's approval of future export quantities, indicating robust regional demand and the signing of new export agreements.

The FEED phase is critical to a final investment decision (FID), contingent upon meeting certain commercial and regulatory conditions. The Leviathan partners are currently engaged in advanced commercial negotiations with potential customers, aiming to secure agreements for the supply of natural gas from the expanded capacity.

A significant milestone

Jeff Ewing, managing director of Chevron's Eastern Mediterranean Business Unit, highlighted the significance of this milestone: "The decision of the Leviathan joint venture to enter FEED is a significant milestone. Chevron is pleased to partner with the State of Israel, and we look forward to supporting the country’s strategy to develop its energy resources for the benefit of the country and the region."

Yossi Abu, CEO of NewMed Energy, expressed optimism about the project: "We can now say that the Leviathan expansion project is underway, guaranteeing a solution for the domestic demand for natural gas and allowing the State of Israel to elevate its status as a key energy supplier in the region and beyond. Specifically, in these challenging times for Israel and the Israeli economy, we are delighted to promote huge investments in Israel, thus also helping to boost the confidence of global markets in the Israeli economy."

Yigal Landau, CEO of Ratio Energies, emphasized the project's impact on Israel's energy security and economy: "We are pleased to announce the achievement of another significant milestone in the expansion of the Leviathan reservoir’s production capacity to approximately 21 BCM per year. Expanding the production capacity will significantly increase the State’s revenues and strengthen Israel’s energy security, alongside the continued establishment of the reservoir as a strategic national and regional asset."

The Leviathan expansion project represents a crucial step in meeting the growing demand for natural gas and reinforcing Israel's position as a leading energy supplier in the region.