Israel’s Leviathan Partners Expand Egypt Gas Deal with $35B Supply Boost

Thursday, August 7, 2025

The partners in Israel’s Leviathan gas field have signed an amendment to their existing export agreement with Blue Ocean Energy, significantly increasing natural gas volumes destined for Egypt.

Under the revised deal, total contracted volumes will rise by up to 130 billion cubic meters (BCM) in two phases, potentially bringing total revenues to an estimated $35 billion over the contract period.

The first increment of around 20 BCM will take effect once Israel Natural Gas Lines (INGL) completes construction of the Ashdod-Ashkelon offshore pipeline and Leviathan partners finish a third pipeline.

This will boost daily export capacity to 650 million standard cubic feet per day (MMSCF/d), up from 450 MMSCF/d.

A second increment of around 110 BCM will be contingent on final investment decisions related to Leviathan’s expansion project and the signing of a transmission agreement for the Nitzana pipeline.

If approved, total daily export volumes could rise to between 1,150 and 1,250 MMSCF/d (approximately 11.9–12.9 BCM annually) by 2029.

The amended contract extends the export period accordingly. The first phase would extend supply until 10 years after pipeline completion or until the full quantity is delivered. If the expansion proceeds, the agreement would extend to December 31, 2040, or until the additional volumes are fulfilled. A further two-year extension is possible if needed.

Chevron Mediterranean operates the Leviathan project with 39.66% working interest, together with partners NewMed Energy with 45.34% and Ration Energies with 15.00% stakes.

Categories: Natural Gas Inspection & Repair & Maintenance FLNG ROV & Dive Support Middle East Pipelines Industry News Activity Production Mediterranean Sea Oil and Gas

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