The partners in Israel's Leviathan gasfield said on Wednesday they plan to invest up to $500 million to expand its capacity after the government approved the export of more natural gas from offshore to boost the economy.
Energy Minister Eli Cohen said the decision to more than double the amount of gas allowed for exports would strengthen diplomatic ties, improve Israel's energy security and bring an added windfall to the economy.
His ministry gave the go ahead for the export of an additional 118 billion cubic metres of natural gas from the east Mediterranean reserves, beyond the 105bcm previously approved. The companies will still need specific export licences for the additional quantities.
Israel's NewMed Energy, which owns a 45.3 per cent stake in the Leviathan field, said its partners now intend to invest $400 million to $500 million in front-end engineering design and long-lead items for the expansion.
It added that additional exports could rise to 145bcm if certain conditions were fulfilled.
Leviathan, the largest of Israel's three offshore gasfields which primarily exports to Egypt and Jordan, is operated by Chevron and has Ratio Energies as a partner.
"Demand for natural gas in Israel and regional markets is rising and as such we are preparing to expand production at the Leviathan project," Ratio chief executive Yigal Landau said.
Chevron said in a statement that it was "pleased to partner with Israel, and we look forward to supporting the country’s strategy to develop its energy resources for the benefit of the country and the region".
Leviathan currently produces 12bcm a year and that will gradually rise to about 21bcm annually, NewMed said. It said the group is continuing to negotiate new deals to sell gas domestically and internationally.
Israel exported 8.6bcm of gas to Egypt in 2023, which is an increase of 39 per cent over the previous year. It also supplied Jordan with 2.9bcm in the same year.
