Israel’s NewMed Energy recently announced a setback in the planned expansion of the Leviathan gas field, attributing the delay to the escalating Israel-Gaza conflict. The expansion, which was set to increase gas supply capacity to Israel Natural Gas Lines’ system, has now been pushed back by six months, with operations expected to resume in April 2025.
NewMed Energy, holding a 45.34% stake in the field, partners with Chevron Mediterranean, the operator with a 39.66% stake, and Ratio Energies, holding the remaining 15%. The delay specifically impacts the installation of the third subsea transmission pipeline, crucial for boosting gas supply capacity from 1.2 billion cubic feet per day to around 1.4 billion cubic feet per day.
The broader strategy behind the expansion aims to enhance the Leviathan field’s total gas production capacity to approximately 21 billion cubic meters annually. The partners had previously committed $429 million for the front-end engineering design phase and initial procurement of long lead items, signaling a step towards realizing increased capacity. Additionally, consideration was given to adding a fourth subsea pipeline to potentially raise daily production capacity to 2.35 billion cubic feet.
Located in the Levantine Basin, approximately 130km west of Haifa, Israel, the Leviathan gas field boasts proven and probable gas reserves of 16.27 trillion cubic feet and condensate reserves of 35.8 million barrels. Despite the delay caused by the regional conflict, the project remains pivotal for meeting Israel’s energy needs and enhancing the country’s gas production capabilities.
The suspension of work on laying the subsea pipeline underscores the significant impact of regional security concerns on energy infrastructure projects. The evolving situation highlights the complex interplay between geopolitical tensions and economic development efforts in the region.
As stakeholders navigate the challenges posed by the delay, attention will be focused on managing risks, ensuring project timelines are met, and addressing security considerations. The resilience and adaptability of the involved parties will be key in overcoming obstacles and ultimately realizing the full potential of the Leviathan gas field expansion.
In conclusion, the temporary setback underscores the intricate dynamics at play in the energy sector, where geopolitical factors can significantly influence project timelines and outcomes. The ongoing conflict serves as a reminder of the need for robust risk management strategies and proactive measures to mitigate disruptions in critical infrastructure projects. By addressing these challenges effectively, stakeholders can work towards achieving long-term energy security and sustainable development goals in the region.
