Israel's NewMed said on Wednesday the Leviathan natural gas field that supplies gas to Egypt and Jordan, shut down nearly two weeks ago due to the Iran-Israel conflict, would resume operations in the next few hours.
Two of Israel's three gas fields - Chevron-operated Leviathan and Energean's Karish - off its Mediterranean coast that provide the bulk of exports to Egypt and Jordan have been shut since June 13.
That left in operation only the older Tamar field, used mainly for domestic supplies.
Israel and Iran agreed to a ceasefire on Tuesday. Israel's Energy Ministry said that after a security assessment, Energy Minister Eli Cohen had ordered the opening of Leviathan and Karish.
The ministry said resuming regular operations at the rigs will "enable the supply of natural gas to all customers", the resumption of gas exports to neighboring countries, a rise in state tax revenues, and greater flexibility in managing the electricity and industrial sectors.
Israeli gas accounts for about 15-20% of Egypt’s consumption, data from the Joint Organisations Data Initiative (JODI) shows. The disruption to Israel’s gas supply had led Egyptian fertilizer producers to halt operations.
Cohen told Reuters last week that Israel would resume natural gas exports once the country's military deemed it safe to do so.
Leviathan, a deep-sea field with huge deposits, came online at the end of 2019 and produces 12 billion cubic metres of gas per year for sale to Israel, Egypt and Jordan. That will rise to some 14 bcm in 2026.
In addition to Chevron and NewMed, Ratio Energies RATIp.TA is also a partner in Leviathan.
(Reuters - Reporting by Steven Scheer; editing by Barbara Lewis and Jan Harvey)