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.
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State-owned Israel Natural Gas Lines Ltd (INGL) signed an agreement to allow the Chevron Corp-led Leviathan consortium to use the planned Nitzana pipeline to ship more natural gas from the Israeli offshore field to Egypt, Leviathan co-venturer NewMed Energy LP said Tuesday.
Chevron Corp. and its local partners have received consent from the Energy and Infrastructures Ministry for a new development plan to grow the production and export capacity of the Leviathan gas and condensate field offshore Israel.
Egypt will boost its contracted purchases of natural gas from Israel’s Leviathan field under a new agreement starting next year, deepening the country’s dependence on imports of the fuel for the long haul.
The Chevron-operated Leviathan field was ordered to shut on June 13 as a precautionary measure following Israel’s attacks on Iran and Tehran’s subsequent retaliation. The Israeli Energy Ministry also ordered the reopening of the smaller Energean Plc-operated Karish field, which supplies the domestic market.
Many questions remain, including the state of Iran’s uranium stockpile and whether any ceasefire will lead to discussions about Tehran’s nuclear program. The Islamic Republic, which has denied it’s seeking an atomic weapon, has refused to give up the right to enrich uranium, a condition the US has insisted upon.
As the Israel-Iran conflict shows no signs of abating, oil supply from the Middle East could become vulnerable if the two sides decide to attack vital energy infrastructure in the region, RBC Capital Markets said, warning that energy, and oil in particular, are now “clearly in the crosshairs.”
Global tanker operators and shipping authorities have taken decisive action, even without an official closure of the Strait of Hormuz, amid escalating tension between Israel and Iran. Their public statements, route shifts, and risk assessments are reshaping freight scheduling, insurance premiums, and–most significantly–energy market sentiment in real time.
Israel launched a series of airstrikes on Tehran’s critical energy infrastructure early Sunday, setting ablaze the city’s main gas depot and a major oil refinery, as the conflict with Iran intensified into its most destructive phase yet. The attacks, part of a broader Israeli offensive targeting Iran’s energy sector, have heightened fears of a wider regional war and sent ripples through global oil markets.
Oil jumped and stocks slid after Israel attacked Iran’s nuclear program facilities and killed senior military commanders in a significant escalation of tensions in the Middle East.