Chevron, a U.S.-based company, along with its partners, has presented an updated reservoir development plan to the Petroleum Commissioner at Israel’s Ministry of Energy and Infrastructures. This plan focuses on expanding the capacity of the Leviathan natural gas field, located 130 kilometers off Haifa’s coast. NewMed Energy, a key partner, highlighted that the proposal centers on Phase 1B of the project, involving new production wells, upgrades to offshore facilities, and the possible addition of a fourth pipeline.

The Leviathan field, operational since late 2019, currently features four subsea wells linked to an offshore platform through a subsea manifold and two 120-kilometer pipelines. NewMed Energy holds a 45.34% stake, while Chevron Mediterranean owns 39.66%, and Ratio Energies has 15%. In October 2024, Chevron delayed a planned increase in gas export capacity due to regional developments following the Israel-Gaza conflict.

Phase 1B unfolds in two stages. The first stage includes drilling three new wells, installing related subsea systems, and enhancing platform processing capabilities. This step aims to elevate the field’s annual gas production to about 21 billion cubic meters (bcm), with an estimated cost of $2.4 billion. In August 2024, partners allocated $429 million for the front-end engineering design phase, with the budget now revised to $505 million based on NewMed’s latest data.

The second stage involves additional wells, subsea systems, and potentially a fourth pipeline, increasing daily output capacity by 2 bcm, reaching 23 bcm annually. The partners plan to secure regulatory approvals and finalize agreements to sell over 100 bcm of Phase 1B gas for domestic use and export. They aim to reach a final investment decision for the first stage of Phase 1B within months.

Yossi Abu, CEO of NewMed Energy, stated: “The Leviathan reservoir is the most stable and strongest energy hub in the Mediterranean. The expanded production capacity will meet growing domestic demand and strengthen Israel’s role as an energy provider, while bolstering regional collaborations.” Last year, the Petroleum Commissioner approved an increase in export volume from the field by 118 bcm, or up to 145 bcm under specific conditions.

Separately, NewMed and its partners recently received approval for an updated plan for the Aphrodite gas field, located in Cyprus’s Exclusive Economic Zone. This development includes a pipeline to export gas to Egypt, marking progress in regional energy initiatives. The Leviathan project continues to position itself as a significant contributor to energy supply in the Mediterranean, supporting both local needs and export markets.