After receiving an indication from the petroleum commissioner at the Ministry of Energy and Infrastructure that they will be allowed to significantly expand annual production, the Leviathan offshore natural gas reservoir partners have announced a $429 million investment on the matter. The investment is in front end engineering and design (FEED) for the project and procurement of long-lead items for the expansion.
The Leviathan partners are NewMed Energy (45.34%), Chevron Mediterranean (39.66%); and Ratio (15%).
Completion of the Leviathan expansion project will allow the increase of annual production capacity from the reservoir from 12 BCM (billion cubic meters) to 21 BCM. This will provide a long-term response to the Israeli economy's demand for natural gas, alongside the deepening of regional activity and new export agreements.
Implementation of the FEED is a major step required before receiving a final investment decision (FID) that it is expected the Leviathan partners will receive. The Leviathan partners are currently conducting commercial negotiations with potential customers, in the domestic and regional economy, with the aim of signing agreements for the sale of natural gas, in line with the additional quantities that will be produced from the reservoir, after its expansion is completed.
Published by Globes, Israel business news - en.globes.co.il - on August 1, 2024.
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