Leviathan Partners Set to Invest $568M to Boost Gas Exports
Partners in the Leviathan gas project, offshore Israel highlighted their intentions to invest $568 million to establish a third pipeline, which will support increasing natural gas output and exports, Reuters reported.
Leviathan is a deep-sea field that came online at the end of 2019. The field produces 12 billion cubic meters (bcm) of natural gas annually for sale to Israel, Jordan and Egypt.
The partners aim to increase capacity to have sizeable volumes for exporting to Europe as it seeks to decrease dependence on Russian gas.
The new pipeline is set to connect the well with a production facility located some 10 km off Israel’s Mediterranean shore. The pipeline is expected to come online during H2 2025, when Leviathan’s output will grow to 14 bcm per annum, the companies said.
Partners at the Leviathan field include operator Chevron, Israel’s NewMed Energy and Ratio Energies.
“Expansion of the production capacity and future liquefaction via a designated liquefaction facility will allow us to supply more natural gas to the local, regional, and very soon also the global market,” said NewMed CEO Yossi Abu.
Ratio Energies CEO Yigal Landau said that record demand from last year continued into the first quarter, and that there was room to expand use of the export network in Jordan as well.
“We are currently exploring the option of upgrading transmission infrastructures in Jordan to transport additional gas quantities to markets in Jordan and Egypt,” Landau said.
Shares in Ratio Energies were trading up 1.4% in Tel Aviv after the announcement, and NewMed Energy shares were up 0.7%.
