Leviathan pens USD 3-billion deal

Israel

JERUSALEM, May 30, 2016 – Partners owning Israel’s offshore Leviathan gasfield signed a USD 3-billion contract to provide gas to a local plant in Be’er Tuvia on Sunday.

The venture will see up to 13 bcm (459 bcf) supplied to the power plant, located 60 km from Jerusalem in central Israel, over a period of 18 years. The 6,000-square-metre facility is owned by Israel Power Management 3000 and Triple-M Power Stations and will produce 430 MW using gas and diesel fuel.

The deal comes a week after the state approved a revised project outline to speed up the field’s development, including a stability clause.

In January, Israeli energy producer Edeltech signed a USD 1.3 billion contract with the Leviathan field for delivery of 6 bcm (212 bcf) of gas for its two new facilities: the 140-MW Tamar facility in the Rotem Plain and its 77-MW power station in Asdod.

Discovered in 2010, the Leviathan field has estimated reserves of 622 bcm (22 tcf) of gas and represents a major find for Israel’s energy industry. Its USD 5-billion development includes a fixed platform about 10 km off the coast. The venture is expected to begin producing by 2019.

The gasfield is owned 39.66% by US’ Noble Energy, 22.67% shared between Delek Group’s subsidiaries Avner Oil Exploration and Delek Drilling, as well as 15% by Ratio Oil Exploration.