Israel’s NewMed Energy Signs Record Gas Deal with Egypt’s Blue Ocean Energy

Israel’s NewMed Energy and its partners have recently inked a groundbreaking agreement with Egypt’s Blue Ocean Energy (BOE) to expand natural gas exports from Israel to Egypt. The deal, valued at approximately $35 billion, covers around 130 billion cubic meters of natural gas, setting new records in Israel’s export history.

NewMed Energy’s CEO, Yossi Abu, hailed the agreement as a strategic milestone in the Eastern Mediterranean region, solidifying Egypt’s role as a key energy hub. The deal is expected to run until 2040, showcasing the long-term commitment between the parties involved.

Leviathan: A Game-Changer in the Mediterranean

The Leviathan gas field, one of the largest in the Mediterranean Sea, has been a pivotal source of natural gas production for Israel. With an estimated 600 bcm of gas reserves, Leviathan has been instrumental in boosting regional energy security and fostering collaboration among neighboring countries.

Operational since 2019, Leviathan has been a joint effort involving NewMed Energy, Chevron Mediterranean, and Ratio Energies. The recent agreement with BOE marks a significant expansion in gas exports to Egypt, further cementing Leviathan’s role in the energy landscape.

Expansion Plans and Future Prospects

The agreement with BOE paves the way for Leviathan’s expansion project, aimed at increasing production capacity by 30%. The project involves the addition of new wells, subsea systems, and processing facilities to enhance annual gas production to 21 bcm.

With the expansion set to boost Israel’s gas output and strengthen regional export capabilities, NewMed Energy is poised to make a final investment decision in the coming years. The completion of the Leviathan expansion project is expected to further elevate Israel’s position as a key player in the global energy market.

Conclusion

The gas deal between NewMed Energy and BOE represents a significant milestone in Israel’s energy sector, showcasing the country’s potential as a major gas exporter in the region. With Leviathan’s continued growth and the strategic partnerships in place, Israel is well-positioned to play a pivotal role in shaping the future of the Eastern Mediterranean’s energy landscape.