Leviathan Partners Sign $3b Israeli Gas Supply Deal

Leviathan Partners Sign $3b Israeli Gas Supply Deal

US’s Noble Energy and Israel’s Delek Group, the partners in Israel’s Leviathan natural gas field, announced they had signed a deal to supply as much as $3b worth of gas to a new private power plant in central Israel, Fortune reported.

Leviathan, one of the largest offshore discoveries of the past decade, was found off Israel’s Mediterranean coast in 2010. It has an estimated 622bcm of reserves and is expected to become operational in 2019. Under the deal, Leviathan will provide up to 13bcm for 18 years to the IPM plant in Be’er Tuvia once gas starts flowing, Reuters reported.

The contract comes a week after Israel’s government approved a revised deal aimed at fast-tracking development of the huge field, which has been mostly earmarked for exports. The deal was concluded between the Texas-based Noble Energy and Israel’s Delek Group, and allowed the firms to move forward with development of the huge Leviathan natural gas field.

The Leviathan project had previously hit a major obstacle in March when Israel’s Supreme Court blocked a previous agreement that bound the state to the terms of the deal for 10 years. The agreement had meant the government would be committed not to change taxes, export quotas or other regulation.


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