The Leviathan gas field, a major offshore natural gas reservoir off the coast of Israel, is resuming production after nearly two weeks of shutdown prompted by escalating hostilities between Israel and Iran. Operated by U.S. energy giant Chevron in partnership with Israeli firm NewMed, Leviathan halted operations on June 13, following an Israeli military strike on Iranian nuclear sites that heightened regional tensions.
The ceasefire agreement reached earlier this week between Israel and Iran allowed Israeli authorities to authorise the restart. Chevron Mediterranean Limited received official notice from Israel’s Ministry of Energy and Infrastructures permitting the Leviathan platform to resume production. NewMed confirmed on Wednesday that Chevron was actively working to restart the facility and return operations to normal within hours.
This resumption is vital not only for Israel’s domestic energy supply but also for the wider region, particularly Egypt and Jordan, which rely heavily on gas imports from Leviathan. The shutdown forced these countries to urgently seek alternative supplies to offset the disruption. Alongside Leviathan, the Karish gas field—operated by the UK-based company Energean plc—is also recommencing output after a period of suspension linked to the conflict. Energean announced it was coordinating with Israeli authorities to safely bring production back online, emphasising the importance of delivering energy security to Israel and its neighbours.
The temporary halting of these key gas fields had raised concerns about regional energy stability, driving European gas prices upward amid fears of wider supply interruptions due to geopolitical instability in the Middle East. The restart is expected to alleviate pressure on European markets and reassure Egypt and Jordan about their energy security.
Prior to this disruption, Israeli natural gas exports to Egypt and Jordan had been on a steady rise, increasing by over 13% in early 2024 despite ongoing conflicts in Gaza. Israel’s Energy Minister had highlighted the strategic role of the natural gas sector in promoting regional stability and advancing Israel’s ambition to become an energy hub, including plans to supply natural gas to European markets aiming to reduce their dependence on Russian energy.
Looking ahead, significant investment plans have been approved by Leviathan’s partners to expand production capacity. A $429 million project will increase output from the current 12 billion cubic metres (bcm) per year to 21 bcm annually through new production wells and enhanced subsea and processing infrastructure. Additionally, NewMed Energy has submitted a broader $2.4 billion expansion plan to Israeli authorities, aiming to further boost production to 23 bcm per year in two development stages. This expansion is expected to strengthen Israel’s position in regional energy markets and support its broader economic and diplomatic strategies.
The recent resumption of Leviathan and Karish underscores the critical interplay between energy security and geopolitical stability in the Middle East. It highlights how international energy investments and regional cooperation remain essential amidst complex and evolving security challenges.
Source: Noah Wire Services
Subscribe to Industry Updates
