Oil & Gas

Israel's government has approved plans to significantly increase the country's natural gas exports and boost production at the Leviathan Gas Field. Energy Minister Eli Cohen has authorized the export of an additional 118 billion cubic meters (bcm) of natural gas from the eastern Mediterranean reserves, more than doubling the previous 105 bcm approval. Leviathan, one of the world's largest deep-water gas fields with an estimated 22.9 trillion cubic feet of recoverable gas, is set to play a crucial role in this expansion. NewMed Energy, along with partners Chevron Corp. and Ratio Oil Corp., plans to invest $400-500 million in the project’s front-end engineering design and long-lead items for the expansion.

Israel aims to gradually increase Leviathan’s production from 12 bcm to 21 bcm annually. In 2023, Israel exported 8.6 bcm of gas to Egypt and 2.9 bcm to Jordan, indicating a significant year-on-year growth. The country is also in negotiations for new domestic and international gas sales agreements. In 2021, Israel, the European Union, and Egypt signed a memorandum of understanding to boost natural gas exports to Europe, marking a significant step in allowing Israel to export substantial amounts of gas to the continent.

Israel has emerged as a key natural gas player in the Mediterranean, with its reserves growing 40% over the past decade due to increased drilling and exploration. The Levant Basin, encompassing parts of Egypt, Israel, Cyprus, and Lebanon, has become one of the world’s vital gas reserves, with around 85 trillion cubic feet discovered over the last 20 years. Major energy companies, including NewMed Energy, Chevron, and Shell, have invested in the region’s gas fields, such as the Aphrodite Gas Field in Cyprus, highlighting the growing importance of these resources in global energy markets.