Leviathan is one of the Eastern Mediterranean's largest gas fields and the cornerstone of Israel's energy system. Its exports to Egypt help supply LNG plants that ship gas to Europe.
The expansion project will support a natural gas deal between Egypt and Israel, in which Israel will supply up to $35 billion of gas to Egypt from Leviathan. That agreement has now taken effect, NewMed Energy, one of the partners, said.
The agreement came amid heightened regional tensions following Palestinian group Hamas' deadly attack on Israel on October 7, 2023, and Israel's subsequent war on the Palestinian enclave of Gaza that left tens of thousands dead.
Egypt's gas production began to decline in 2022, forcing it to abandon its ambitions to become a regional supply hub. It has increasingly turned to Israel, with which it has a peace deal, to make up the shortfall.
EXPANSION BOOSTS ISRAEL GAS OUTPUT BY QUARTER
Chevron said the expansion will raise total gas deliveries from Leviathan to about 21 billion cubic metres (bcm) per year. That represents an increase of more than a quarter in the volume of natural gas produced in Israel, NewMed said.
The Leviathan expansion project, which has a budget of $2.36 billion, is expected to come online in 2029, NewMed said.
Leviathan's partners include Chevron Mediterranean Ltd as the operator with a 39.66% stake, NewMed with 45.34% and Ratio Energies with a 15% share. Shares in NewMed rose 5.2% by 0913 GMT in Tel Aviv trade and Ratio gained 3.7%.
Estimated recoverable gas at Leviathan is about 635 bcm, but the project’s FID has shifted most contingent resources to be classified as reserves, raising the field’s value to roughly $18.7 billion, NewMed said.
Sales from Leviathan in 2025 totaled about 10.9 bcm, or about $2.23 billion, NewMed said.
The Leviathan field was discovered in 2010, with first production about 6 years ago.
Chevron's broader Eastern Mediterranean assets include Tamar gas-producing field offshore Israel and the Aphrodite gas field offshore Cyprus, which is under development.
(Reuters, January 16, 2026)