Leviathan partners secure gas export deal

Israel

JERUSALEM , September 26, 2016 – The companies developing Israel’s Leviathan gasfield in the eastern Mediterranean have signed an export agreement with a Jordanian utility company, two parties involved announced on Monday.

Delek Drilling and its partner, majority stakeholder Noble Energy, will supply Jordan’s National Electric Power Company with 45.3 bcm (1.6 tcf) per year for a period of 15 years, thus underpinning the development work with a gas-sales agreement.

In a reaction, Delek Drilling CEO Yossi Abu said the contract “positions the Leviathan project in the center of the regional energy map.” He also added that the partners in the development would “continue to pursue long-term agreements with other customers in the eastern Mediterranean, including in Egypt, Turkey and the Palestinian Authority.”

Discovered in 2010, the Leviathan field is estimated to hold natural gas reserves of around 620 bcm (21.9 tcf). First gas was originally expected by 2017 but has since been delayed repeatedly.

Delek and Noble Energy were thrown a curveball in late 2014 when the Israeli antitrust commissioner challenged the Natural Gas Outline Plan agreed upon by the government and the consortium. In March 2016, the Israeli Supreme Court thwarted efforts by Prime Minister Benjamin Netanyahu to bypass the Knesset in setting up a gas framework. Delek remains committed to starting the development of the Leviathan gasfield by the end of 2019.

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