Chevron Gives Green Light to Expand Leviathan Gas Project in the Eastern Mediterranean

Chevron Greenlights Major Leviathan Gas Field Expansion

Chevron has given the go-ahead for a significant expansion of the Leviathan natural gas field, located off the coast of Israel. This move further establishes the company’s position as a leading supplier in the Eastern Mediterranean energy sector.

On Friday, the American energy giant announced that its subsidiary, Chevron Mediterranean Limited, together with its partners, has finalized the decision to boost output at the Leviathan offshore facility. The planned upgrade will increase the field’s annual gas production to approximately 21 billion cubic meters, marking a substantial rise from current output.

The development plan includes drilling three new wells offshore, adding advanced subsea infrastructure, and enhancing the existing processing systems on the production platform. The first additional gas from this expansion is anticipated to come online by the decade’s end, depending on project progress.

Leviathan stands as one of the Mediterranean’s largest gas finds and is vital for meeting Israel’s domestic energy needs, as well as for supplying gas exports to Egypt and Jordan. Gas from Leviathan is transported to Egypt via pipeline, where it is used locally and also processed for LNG exports to Europe and beyond.

Chevron described this investment as a strategic effort to bolster energy security in the region, especially as demand for dependable gas sources grows. The company emphasized natural gas’s importance as a transitional energy source in the Eastern Mediterranean, helping countries balance cost, security, and environmental targets.

The Leviathan platform is situated about 10 kilometers off the coast of Dor, Israel. Chevron holds a 39.66% operating stake in the field, with NewMed Energy owning 45.34% and Ratio Energies holding 15%.

This expansion comes at a time of heightened interest in Eastern Mediterranean gas resources, as Europe seeks to diversify its energy imports following a significant reduction in Russian pipeline supplies. While Leviathan’s output is modest compared to global LNG volumes, the field has become a key regional hub, supporting Egypt’s LNG export capabilities and underpinning long-term supply agreements with Israel and Jordan.

Since acquiring Noble Energy in 2020, Chevron has steadily increased its presence in the area. In addition to Leviathan, the company operates the Tamar gas field off Israel’s coast and is developing the Aphrodite field near Cyprus. Chevron also holds exploration interests, both operated and non-operated, in Egyptian waters.

For Israel, expanding Leviathan supports its goal of remaining a major regional gas exporter while ensuring stable domestic supply. For Egypt, the additional gas could help maintain steady LNG exports, which have occasionally been disrupted by local demand and upstream challenges.

Industry Trends and Additional Insights

This decision highlights a broader industry movement, with global oil companies increasingly focusing on gas projects that leverage existing infrastructure and established markets, rather than investing in entirely new LNG developments.

Chevron has not revealed the total investment required for the Leviathan expansion.

By Charles Kennedy for Oilprice.com