Chevron Halts Leviathan Gas Field Expansion

Chevron has suspended work on the third phase expansion of Israel's Leviathan gas field due to the escalating conflict in the region, with plans now deferred until at least April 2025. This halt affects the installation of a subsea pipeline intended to increase gas supply capacity from 1.2 billion cubic feet per day (BCF/d) to 1.4 BCF/d, delaying the project's completion by a minimum of six months. NewMed Energy, a project partner, noted that while the overall value of the project remains intact, there will be a significant negative impact on expected cash flows in 2025. The Leviathan field, which produced 11.1 billion cubic meters (BCM) of natural gas in 2023, is critical for both domestic use and exports, primarily to Egypt and Jordan. This delay may reduce Israel's gas available for export, as domestic consumption has seen a rise alongside increased demand for exports. The decision comes amid heightened security concerns following recent missile strikes in the region and ongoing military tensions between Israel and Iran-backed groups.