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GLNG MIDDLE EAST GLNG

Leviathan partners boost field valuation,

plan higher output, exports

ISRAEL THE partners in Israel’s giant offshore Levi- The partners have boosted the value of Levi-
athan gas field have placed a new value on the athan reserves to $12.5bn amid plans to build a
Discovered in 2012, reservoir’s value following an updated report third pipeline to the platform at a cost of $562mn
Levithan holds an on it status by Texas-based Netherland, Sewall that will raise production capacity from the cur-
estimated 22 trillion and Associates (NSAI). The new evaluation rent 1.2 bcf (34 mcm) per day.
cubic feet (623bn cubic took into consideration plans by the partners Production at Leviathan began in Decem-
metres) of natural gas. to build a new pipeline and increase produc- ber 2019, with gas going to the domestic Israeli
tion from Leviathan to 1.4bn cubic feet (40mn market. The field now supplies gas to Jordan and
cubic metres) by 2025. That led NSAI to classify Egypt as well, and plans are being drawn up to
a significant amount of the field’s conditional install a floating LNG (FLNG) vessel at the site
resources as reserves, according to a NewMed with a capacity to produce 4.5mn tonnes (6.5bn
Energy in a filing to the Tel Aviv Stock Exchange, cubic metres) per year. Initial investment in the
thus boosting the resource value. FLNG project is estimated to cost $100mn.
NewMed, formerly Delek Drilling, holds Discussions with Egypt have also taken place
45.3% in Leviathan, while Chevron Corpora- regarding the re-export of Israeli gas through
tion owns 39.66% and Ratio Oil Corporation one of Egypt’s two onshore LNG terminals. Last
has 15%. June, Israel, Egypt and the EU signed a memo-
Discovered in 2012, Levithan holds an esti- randum of understanding (MoU) addressing the
mated 22 trillion cubic feet (623bn cubic metres) shipment of Israeli LNG to Europe via Egypt.
of natural gas and is the largest in a number of Output and revenues have steadily increased.
natural gas discoveries made in the Israeli off- Leviathan produced 10.7 bcm in 2021 with reve-
shore by Houston-based Noble Energy, which nues of $1.9bn. In 2022, sales volumes amounted
was purchased by Chevron in 2020. to 11.4 bcm with earnings of $2.5bn. ™

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