Chevron Corp and its local partners have agreed on a $2.36-billion final investment decision (FID) for stage 1 of a project to raise production in the Leviathan natural gas and condensate field offshore Israel.
Expected to start operation in the second half of 2029, the first stage of Phase 1B aims to increase capacity to about 21 billion cubic meters (741.61 billion cubic feet) a year, consortium member NewMed Energy LP said in a stock filing on Friday. On August 21, 2025, it said the Energy and Infrastructures Ministry had approved Phase 1B.
Leviathan, discovered 2010 off the coast of Haifa city, went onstream December 2019 under Phase 1A, which has a capacity of about 12 Bcm per annum, according to NewMed Energy.
Chevron upstream president Clay Neff said in a separate statement issued online by the United States energy giant, “Chevron is a leading energy player in the Eastern Mediterranean, where we are focused on natural gas production and exports”.
“Our decision to invest in the expansion of Leviathan’s production capacity reflects our confidence in the future of energy in the region”, Neff added.
Neff claimed, “Pragmatic U.S. and regional energy policies are helping to strengthen energy security across the Eastern Mediterranean and foster an environment that encourages investment in the Middle East and globally”.
“This milestone demonstrates our ongoing commitment to partner with the state of Israel to develop natural gas resources and provide essential energy to millions of people in Israel, Egypt and Jordan”, said Jack Baker, Chevron managing director for the Eastern Mediterranean.
NewMed Energy’s regulatory disclosure said, “According to the development plan, Stage One of the Expansion Project includes the drilling and completion of three additional production wells, the addition of supplementary subsea systems and expansion of the processing systems on the platform, with the aim of increasing the installed capacity of the platform up to approx. 23 Bcm per year. However, Stage One of the Expansion Project is expected to increase the total gas production capacity of the Leviathan Project up to approx. 21 Bcm per year, inter alia given restrictions of the subsea pipeline”.
The increase to about 23 Bcm would be accomplished under stage 2. The second stage is subject to regulatory approvals and agreement on further investment for a fourth pipeline between the field and the platform and more subsea installations, according to NewMed Energy. The consortium expects to make a FID on stage 2 “in the coming years”, it said.
The filing also said all conditions for the entry into force of an amended agreement signed last year between the Leviathan consortium and their current customer Blue Ocean Energy had been fulfilled. The new deal, announced by NewMed Energy August 7, 2025, raises gas exports to Egypt by a total volume of 130 Bcm.
On December 17, 2025 NewMed Energy said the consortium had received approval from Israel’s Energy and Infrastructures Ministry for the increased gas exports to Egypt.
On October 26, 2025 NewMed Energy said Israel’s Natural Gas Authority has allotted 41.8 percent of the capacity of the planned Nitzana natural gas pipeline from Israel to Egypt to the Leviathan consortium. The allocation is equivalent to about 175.56 billion British thermal units per day, according to NewMed Energy. “Chevron, on behalf of the Leviathan partners, signed an amendment to the Transmission Agreement intended to reflect the updated allocated rate”, it said.
Chevron operates Leviathan with a 39.66 percent stake through Chevron Mediterranean Ltd. NewMed Energy, owned by Israel’s Delek Group, owns 45.34 percent. Ratio Energies LP, also an Israeli company, holds 15 percent.
To contact the author, email jov.onsat@rigzone.com
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