The Mediterranean’s Leviathan gas field is poised for a major upgrade, as Chevron and its partners unveil ambitious plans to supercharge production. With new wells, upgraded facilities, and a potential fourth pipeline, this energy giant is set to redefine the region’s energy landscape.
A New Chapter for Leviathan: Phase 1B Takes Shape
Chevron, alongside partners NewMed Energy and Ratio Energies, has submitted an updated development plan for the Leviathan gas field to Israel’s Ministry of Energy and Infrastructures. The plan focuses on Phase 1B, which includes drilling new production wells, upgrading offshore facilities, and potentially adding a fourth pipeline to the existing infrastructure.
Located 130 kilometers off the coast of Haifa, Leviathan has been a cornerstone of Israel’s energy strategy since it began production in 2019. The field currently operates four subsea wells connected to an offshore platform via a subsea manifold and two pipelines. But with growing domestic demand and regional export opportunities, the partners are pushing for more.
Yossi Abu, CEO of NewMed Energy, emphasized the field’s strategic importance: “Leviathan is the Mediterranean’s most stable and robust energy hub. This expansion will not only meet Israel’s energy needs but also strengthen our role as a regional energy provider.”
Breaking Down the $2.4 Billion Expansion
The updated plan outlines a two-stage approach for Phase 1B. Stage one involves drilling three new production wells, expanding subsea systems, and upgrading processing facilities on the platform. This phase alone is expected to boost the field’s annual gas production capacity to 21 billion cubic meters (bcm), with an estimated cost of $2.4 billion.
In August 2024, the partners approved an initial investment of $429 million to move the project into the front-end engineering design (FEED) phase. However, recent updates from NewMed Energy indicate that the approved budget has since risen to $505 million, reflecting the project’s growing scope.
Stage two, which includes additional wells and a potential fourth pipeline, aims to increase daily production capacity by another 2 bcm per year, bringing the total to 23 bcm annually. This expansion could position Leviathan as one of the most prolific gas fields in the region.
Regional Impact and Future Prospects
The Leviathan expansion isn’t just about boosting production—it’s about securing Israel’s energy future and fostering regional collaboration. The partners are seeking regulatory approvals and finalizing agreements to sell over 100 bcm of natural gas to both domestic and international markets.
Last year, the project received approval to increase export volumes by an additional 118 bcm, with the potential to reach 145 bcm under certain conditions. This move aligns with Israel’s broader strategy to become a key energy exporter in the Eastern Mediterranean.
Meanwhile, NewMed Energy and its partners are also advancing plans for the Aphrodite gas field offshore Cyprus, including a pipeline to export gas to Egypt. These developments underscore the growing importance of Mediterranean energy resources in shaping global energy markets.
