KEY POINTS
- Leviathan partners submitted a $2.4 billion plan to expand production.
- Gas output is expected to increase to 21 bcm annually by 2026.
- The expansion strengthens Israel’s energy security and export potential.
The Leviathan natural gas field, Israel’s largest offshore energy resource, is set for a significant expansion as its partners submit a multi-billion-dollar proposal to the government. The expansion, led by NewMed Energy, Chevron, and Ratio Energies, aims to increase production capacity to 21 billion cubic meters (bcm) per year.
According to NewMed Energy, the plan includes drilling three additional wells, upgrading undersea infrastructure, and expanding processing facilities on the platform.
However, the project, expected to cost around $2.4 billion, is designed to meet growing domestic and international demand. With gas already flowing to Israel, Egypt, and Jordan, the field’s partners are looking to secure long-term contracts with new customers.
“The Leviathan reservoir is the most stable and strongest energy hub in the Mediterranean,” said Yossi Abu, CEO of NewMed Energy. “Expanding production will help meet local demand while strengthening Israel’s role as an energy supplier in the region.”
Future expansion could push output even higher
Leviathan, which began production in late 2019, currently delivers 12 bcm of natural gas per year. With the completion of a third pipeline in 2026, this figure is expected to rise to 14 bcm.
Moreover, the second phase of the expansion plan could see an additional production boost, potentially bringing output to 23 bcm annually. This would involve drilling more wells and possibly installing a fourth pipeline between the field and the platform.
According to Reuters, NewMed Energy confirmed that a $505 million budget has already been approved for equipment purchases, showing the partners’ commitment to advancing the project.
Beyond supplying Israel and neighboring countries, they are negotiating contracts to deliver more than 100 bcm of gas to new international markets.
Strengthening Israel’s energy security and regional ties
Israel considers the Leviathan gas field as a strategic resource that strengthens its energy security and develops regional partnerships between neighboring countries.
The existing field enables strong economic relationships between Egypt and Jordan and may provide new opportunities for export arrangements.
The authorities now examine this proposal to establish its economic and environmental standpoint for complete authorization. If the project moves forward as planned, it will cement Leviathan’s position as a major energy hub in the Eastern Mediterranean.
Experts predict that expanded operations will create stability regarding gas prices and guard against intermittent global energy market fluctuations.
The coming months will determine the timeline for implementation, but for now, the Leviathan partners are pushing forward with their vision for a larger and more influential gas field.
