JERUSALEM (Reuters) -Israel on Wednesday approved the export of more natural gas from its offshore fields to boost the economy and energy security, and its partners in the huge Leviathan project in turn said they planned to invest up to $500 million to expand its capacity.
Energy Minister Eli Cohen said the decision to more than double the amount of gas allowed for exports would strengthen diplomatic ties, improve Israel’s energy security and bring an added windfall to the economy.
His ministry gave the green light for the export of an additional 118 billion cubic metres (bcm) of natural gas from the east Mediterranean reserves, beyond the 105 bcm previously approved. The companies will still need to get specific export licenses for the additional quantities.
The Leviathan partners, which include operator Chevron and Israeli companies NewMed Energy and Ratio Energies, said they now intend to invest $400-500 million to expand the project, which primarily exports to Egypt and Jordan.
That includes the project’s front-end engineering design and long lead items, NewMed said. It added that additional exports could rise to 145 bcm if certain conditions are fulfilled.
“Demand for natural gas in Israel and regional markets is rising and as such we are preparing to expand production at the Leviathan project,” said Ratio chief executive Yigal Landau.
Leviathan currently produces 12 bcm a year, and that will gradually rise to about 21 bcm a year, NewMed said. It said the group is continuing to negotiate new deals to sell gas domestically and internationally.
Israel exported 8.6 bcm of gas to Egypt in 2023, which is an increase of 39% over the prior year. It also supplied Jordan with 2.9 bcm in 2023.
(Reporting by Ari Rabinovitch; editing by Jason Neely, Bernadette Baum and Michael Perry)
