Israel expands natural gas exports from Leviathan field to bolster economy, energy security
Date
6/27/2024 5:14:49 AM
(MENAFN) On Wednesday, Israel announced its decision to significantly increase natural gas exports from its offshore fields, specifically from the massive Leviathan field project, in a move aimed at bolstering the Economy and enhancing energy security. Energy Minister Eli Cohen highlighted that expanding gas exports would not only strengthen diplomatic relations but also bring substantial economic benefits and improve Israel's energy resilience.
The Ministry of Energy approved an additional export quota of 118 billion cubic meters of Natural gas from the eastern Mediterranean reserves, marking a significant increase from the previously authorized 105 billion cubic meters. However, companies involved in the Leviathan project still need to secure specific export licenses to proceed with exporting the additional quantities.
Neomed Energy, holding a 45.3 percent stake in Leviathan, disclosed that project partners are planning to invest between USD400 million and USD500 million to expand the field's production capacity. This investment will cover initial engineering designs, necessary materials, and equipment procurement, processes that are crucial for enhancing production capabilities over an extended period.
Moreover, Neomed Energy indicated that potential additional exports could reach up to 145 billion cubic meters contingent upon meeting certain conditions. Chevron, the operator of Leviathan, oversees operations in Israel's largest offshore gas field, which primarily exports its production to neighboring countries such as Egypt and Jordan. Ratio Energies, another partner in the Leviathan project, underscored the growing demand for natural gas in both domestic and regional markets, signaling preparations for expanding production to meet these increasing needs.
The expansion of natural gas exports from Leviathan underscores Israel's strategic efforts to leverage its energy resources for economic growth and regional stability. By investing in production capacity enhancements and expanding export capabilities, Israel aims to capitalize on its natural gas reserves to foster economic prosperity and strengthen its position in the evolving energy landscape of the eastern Mediterranean region.
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