In a definitive move that cements Israel’s status as a regional energy titan, the partners behind the Leviathan gas field have officially greenlit a massive $2.4 billion expansion. This strategic investment not only promises to nearly double production capabilities by 2029 but also strengthens the geopolitical bedrock of the Eastern Mediterranean following a historic export agreement with Egypt.
Powering the Future: Key Expansion Details
- Massive Investment: A finalized commitment of $2.36 billion to expand the reservoir’s infrastructure.
- Production Surge: Capacity will jump from ~12 BCM to 21 BCM annually, with infrastructure built to handle up to 23 BCM.
- Strategic Catalyst: The decision follows a $35 billion export deal with Egypt, securing long-term demand.
- Timeline: Drilling and upgrades are set to conclude for gas flow in the second half of 2029.
Israel’s Energy Backbone Gets a Multi-Billion Dollar Upgrade
The consortium leading the Leviathan project—comprising American giant Chevron, New-Med Energy, and Ratio Energies—has taken the Final Investment Decision (FID) to inject $2.36 billion into the project. This ambitious capital expenditure aims to radically alter the field’s output profile. It is important to note that this total includes $504 million previously approved for development in July 2024, demonstrating a sustained and calculated approach to growth.
By committing to this expansion, the partners are effectively declaring that the Leviathan reservoir is more than just a gas field; it is a long-term geopolitical asset. With the field’s valuation now estimated at approximately $18.7 billion (based on a 7.5% discount rate), the project stands as a pillar of the Israeli economy. New-Med Energy has indicated it will fund its share through self-generated cash flow and existing credit lines, while keeping options open for bank loans or bond issuances to maintain financial flexibility.
How Will Engineering Crews Double the Output?
To achieve the target production rate of 21 billion cubic meters (BCM) per year—nearly double the current 12 BCM—the partnership is launching a complex engineering operation deep in the Mediterranean. The plan involves drilling and completing three new production wells, a significant undertaking that requires precision and advanced technology.
Beyond the drilling, the investment covers the installation of complementary subsea systems and extensive upgrades to the processing modules on the existing platform. While the immediate goal is 21 BCM, the infrastructure is being future-proofed to handle a maximum capacity of 23 BCM annually. This foresight ensures that as regional demand grows, Israel’s infrastructure will not face immediate bottlenecks, allowing for a seamless supply of energy to both domestic and international markets.
What Role Does the Cairo Connection Play?
This expansion is inextricably linked to the landmark agreement recently signed between Israeli suppliers and Egypt. The partners cite a massive export deal involving 130 BCM of natural gas—valued at roughly $35 billion—as the primary driver for this investment. This contract secures a destination for the increased output through 2040.
The mechanics of the Egypt deal are structured to provide immediate and long-term revenue: 20 BCM will be sold starting this year, with the remaining 110 BCM scheduled for delivery once the expansion comes online. This synergy between diplomatic agreements and infrastructure investment highlights how Israel is leveraging its natural resources to foster regional stability and economic integration.
Economic Ripples: Revenue and Stability
The financial implications for Israel are profound. In 2025 alone, Leviathan supplied 10.9 BCM, generating sales of $2.23 billion. With the expansion, these numbers are set to skyrocket, bringing tens of billions of shekels into the state treasury through royalties and taxes.
Industry leaders are vocal about the strategic importance of this move. Yossi Abu, CEO of New-Med Energy, described Leviathan as an “energetic backbone” for Israel and the region, emphasizing that the investment ensures available, stable, and competitive energy. Similarly, Yigal Landau of Ratio Energies highlighted that increasing production allows for the preservation of geopolitical interests while ensuring the domestic market remains well-supplied.
| Metric | Current Status (2025) | Projected Status (2029) |
|---|---|---|
| Annual Production | ~12 BCM | 21 BCM (Max capacity 23 BCM) |
| Primary Export Deal | Ongoing regional sales | $35B Contract with Egypt (130 BCM total) |
| Field Valuation | — | ~$18.7 Billion |
| Strategic Focus | Stabilization & Cash Flow | Aggressive Expansion & Geopolitical Leverage |
| Infrastructure | Existing Wells & Platform | +3 New Wells & Upgraded Subsea Systems |
Strategic Energy Milestones
- Execute Drilling Operations: Complete the drilling of three additional wells to tap into the reservoir’s deeper potential.
- Upgrade Platform Capacity: Install new treatment modules and subsea systems to process the increased gas flow volume.
- Fulfill Export Commitments: Ensure the supply chain is ready to deliver the contracted 110 BCM to Egypt post-expansion.
Glossary of Terms
- BCM (Billion Cubic Meters): A standard unit of measurement for natural gas volume used in production and trade.
- FID (Final Investment Decision): The point in an energy project where the board of directors approves the capital expenditure, signaling the project is officially a “go.”
- Leviathan Reservoir: A massive natural gas field located in the Mediterranean Sea off the coast of Israel, containing approximately 635 BCM of gas.
- Subsea Systems: Equipment installed on the ocean floor to control the flow of oil or gas from the reservoir to the surface platform.
Methodology
This report is based on the official announcement regarding the Leviathan reservoir expansion released by the partnership consortium (Chevron, New-Med Energy, Ratio Energies). Financial figures, production targets, and export details were derived directly from the corporate disclosure provided in the news text.
Frequently Asked Questions
Who owns the Leviathan gas field?
The field is owned by a partnership consortium. The major stakeholders are Chevron (the American energy major holding 39.7%), New-Med Energy (a subsidiary of Yitzhak Tshuva’s Delek Group holding 45.3%), and Ratio Energies (owned by the Landau and Rotlevy families holding 15%).
Why is this expansion happening now?
The decision was triggered by a massive long-term export agreement with Egypt. The deal, valued at $35 billion for 130 BCM of gas, provided the financial security and demand guarantee needed to justify the $2.4 billion infrastructure investment.
When will the new gas supply be available?
The partners expect the expansion work, including the drilling of new wells and platform upgrades, to be completed in 2029. Gas flow from the expanded capacity is targeted to begin in the second half of that year.
How does this benefit the Israeli public?
Beyond energy security and electricity generation, the project is a major revenue generator. Yigal Landau, CEO of Ratio Energies, noted that the state is expected to receive tens of billions of shekels in revenue from the expansion, which funds public services and infrastructure.
Did the 2025 production meet expectations?
In 2025, the reservoir supplied 10.9 BCM of gas with total sales amounting to $2.23 billion. The expansion is designed to nearly double this output capacity, significantly increasing future sales volume.
The Energy Era Continues
Israel is rapidly evolving from a nation seeking energy independence to a global supplier ensuring regional stability. With the backing of major international players and a secure export pipeline to Egypt, the Leviathan expansion is a clear signal that the Jewish state is investing heavily in a prosperous, interconnected future. The project guarantees that as the Middle East’s energy needs grow, Israel will be the one keeping the lights on.
The Bottom Line
- Capacity Doubling: Production will leap to 21 BCM/year by 2029.
- Economic Windfall: The expansion is underpinned by a $35 billion export contract.
- Geopolitical Anchor: Israel strengthens its diplomatic ties with Egypt through critical infrastructure.
Why We Care
This development is critical because it transforms Israel from a resource-poor nation into a dominant energy exporter. The revenue generated strengthens the Israeli economy and military, while the export dependency creates a tangible incentive for peace and stability with neighboring Arab nations like Egypt. It proves that Israel’s natural resources are being managed with long-term strategic vision, benefiting both the Zionist enterprise and the broader region.
