Leviathan partners approve $96.4 million budgets for Pre-FEED planning of Leviathan

• This is the first step on the path to implementation of the project for the expansion of Leviathan and gas liquefaction
• Partners to launch a bid between international groups specializing in the design and construction of FLNGs and for the expansion of production from the reservoir by some 9 BCM per year
• Supply of gas from Leviathan for the domestic market to increase
• The FLNG is expected to produce some 4.6 million tons of LNG per year
• NewMed Energy's total share of the budgets – some $44 million

NewMed Energy, under the management of Yossi Abu, reported today (Monday, 21 February 2023), the approval of two budgets for the performance of pre-FEED in the context of Phase 1B of the development of the Leviathan reservoir, to increase the total gas production capacity of the reservoir by some 9 BCM annually, to a total of some 21 BCM annually (from the current 12 BCM).

Further to previous analyses, the Leviathan partners (NewMed Energy 45.34%, Chevron Mediterranean Limited 39.66%, and Ratio energies 15%) are promoting the construction of an FLNG facility under their ownership, with an annual production capacity of some 4.6 million tons of LNG, out of the additional annual capacity of 9 BCM.

The partners approved the total budget of some $96.4 million, which include $44.9 million for pre-FEED and commencement of FEED, for expansion of the Leviathan production system, including the design of subsea infrastructures and required adjustments on the platform, NewMed Energy's share is $20.4 million; the balance, $51.5 million for pre-FEED for the FLNG facility, in a bid between international groups specializing in the design and construction of FLNG facilities, NewMed Energy's share – $23.3 million.

Yossi Abu, CEO of NewMed Energy: "Today we are taking a significant step towards the expansion of Leviathan. The local, regional and global markets are expecting this move and we are working hard to promote it, alongside our work on the construction of an FLNG facility, which will enable us to market the gas from Leviathan to the global market. Israel has significant quantities of discovered natural gas, and more quantities of yet undiscovered gas. The steps we are taking today, alongside moves promoted by the government, will drive the natural gas market forward and make Israel a significant player in the global gas market."