Chevron, partners approve expansion of Israel’s Leviathan gas field

By Stephanie Kelly

Jan 16 (Reuters) - Chevron CVX.N and partners on Friday approved plans to vastly expand production at Israel's sprawling Leviathan gas field, a project set to supply Egypt and others with more than $35 billion worth of natural gas.

The expansion will boost gas deliveries from Leviathan by 9 billion cubic metres (bcm) per year to about 21 bcm, flows expected to supply the region as well as Europe in the form of liquefied natural gas.

Leviathan is one of the Eastern Mediterranean's largest gas fields with an estimated 635 bcm in recoverable gas. The expansion will raise Israel's total gas output by more than 25%, said partner firm NewMed Energy NWMDp.TA.

U.S. major Chevron and partners reached agreement with Egypt on gas exports last year as Egyptian production declined and despite Palestinian group Hamas' deadly attack on Israel on October 7, 2023, and Israel's subsequent war on Gaza that left tens of thousands dead.

Egypt's gas production began to drop in 2022, forcing it to abandon its ambitions to become a regional supply hub. It has increasingly turned to Israel, with which it has a peace deal, to make up the shortfall.

The Leviathan expansion project, which has a budget of $2.36 billion, is expected to come online in 2029, NewMed said.

Leviathan's partners include Chevron Mediterranean Ltd as the operator with a 39.66% stake, NewMed with 45.34% and Ratio Energies RATIp.TA with a 15% share. Shares in NewMed rose 5.2% by 0913 GMT in Tel Aviv trade and Ratio gained 3.7%.

Sales from Leviathan, which was discovered in 2010, reached about 10.9 bcm in 2025, or about $2.23 billion, NewMed said.

Chevron's broader Eastern Mediterranean assets include Tamar gas-producing field offshore Israel and the Aphrodite gas field offshore Cyprus, which is under development.