Time: 2024-08-03
NewMed Energy and Chevron Corp. have revealed a substantial 29 million investment in the Leviathan offshore Natural gas reservoir following approval from the petroleum commissioner at the Ministry of Energy and Infrastructure to expand annual production . The investment will focus on front end engineering and design ( FEED ) for the project and procuring long - lead items for the expansion . The Leviathan partners involved in the project are NewMed Energy with a 45.34 % stake , Chevron Mediterranean with 39.66 % , and Ratio with 15%.
The expansion project at Leviathan will result in a significant increase in annual production capacity from the current 12 billion cubic meters ( BCM ) to 21 BCM . This boost in production capacity will cater to the growing demand for natural gas in the Israeli economy while also supporting regional activities and facilitating new export agreements . The move marks a strategic step towards ensuring a stable supply of natural gas in the region.
The partners at Leviathan are now focused on finalizing the front end engineering and design ( FEED ) phase , a critical milestone before making a final investment decision ( FID ) . The completion of this phase is crucial for the partners to move forward with the project and secure necessary approvals . Additionally , the partners are actively engaged in commercial negotiations with potential customers both domestically and regionally to secure agreements for the sale of natural gas once the expansion is completed.
This significant investment and expansion project at Leviathan are poised to have a far - reaching impact on the energy landscape in Israel and the region . With a focus on meeting the increasing demand for natural gas , the project aligns with the country 's strategic goals of ensuring energy security and boosting economic growth . The move also underscores the importance of natural gas as a key component of the energy mix in the region , driving both economic development and regional cooperation.
In conclusion , the Leviathan partners ' investment in expanding the natural gas reservoir signals a new chapter in the energy sector , with far - reaching implications for Israel and the region . The project 's successful completion will not only enhance the country 's energy security but also foster economic growth and regional collaboration . As negotiations progress and agreements are finalized , the Leviathan expansion project is set to play a pivotal role in shaping the future of natural gas production and distribution in the region.
Business
