Chevron and its partners in the Leviathan reservoir have finalised a USD 610-million, 15-year EPC contract with Israel Natural Gas Lines to construct a pipeline to boost natural gas exports to Egypt, the Times of Israel reported on Wednesday.
The 65-kilometre pipeline will connect Ramat Hovav in southern Israel to the Nitzana crossing on the Egyptian border. Construction is expected to begin in the fourth quarter of 2025 and take around three years, subject to regulatory approvals.
Once completed in 2028, the Nitzana route will transport at least 17 mcm (600 mcf) per day of gas, potentially lifting Israel’s export capacity to Egypt to more than 62.3 mcm (2.2 bcf) per day.
“This milestone reflects Chevron’s commitment to advancing energy security in Israel and regionally,” Chevron Eastern Mediterranean Business Unit managing director Jack Baker said.
The agreement follows a USD 35-billion deal in August to supply natural gas to Egypt, the largest export contract in Israel’s history. The state expects substantial revenues through royalties and taxes.
Leviathan, one of the world’s largest deepwater gas discoveries, holds an estimated 600 bcm of reserves. Partners include NewMed Energy with 45.3% and Ratio Oil with 15%.
“Leviathan is a national project and its expansion is the anchor of Israel’s energy security for the coming decades,” NewMed Energy CEO Yossi Abu said.
Leviathan began supplying the Israeli domestic market in December 2019 and exports to Egypt in January 2020. To date, it has delivered 23.5 bcm to Egypt, meeting 15-20% of the country’s gas demand.
Source: theenergyyear.com