US supermajor Chevron and its partners have sanctioned a $2.36 billion expansion project for the Leviathan gas field offshore Israel. The final investment decision (FID) covers drilling three additional subsea wells, installing more subsea infrastructure, and upgrading the treatment facilities on the platform, located about 10 kilometres offshore. The project is scheduled for completion and to start producing gas in the second half of 2029.

Production and Strategic Goals

The expansion aims to increase the field's total gas delivery to Israel and the region to approximately 21 billion cubic metres per annum, up from the current production of around 12 Bcm per annum. This will provide affordable, reliable gas for Israel, Egypt, and Jordan. To facilitate increased gas flows to Egypt, further investments in onshore and offshore pipelines and compressor stations will be required, funded by the Leviathan partners and the Israeli state.

Reserves Reclassification and Field Value

Following the FID, an updated reserves report was prepared. The estimated recoverable quantity from Leviathan remains around 635 Bcm (22.4 trillion cubic feet). However, the vast majority of contingent resources have now been reclassified as reserves. This reclassification has increased the total estimated value of the Leviathan field to about $18.7 billion.

Commercial and Strategic Impact

In 2025, the Leviathan partners sold approximately 10.9 Bcm of natural gas and 886,000 barrels of condensate for a gross consideration of about $2.23 billion. The expansion is seen as a long-term strategic response to domestic demand, guaranteeing Israel's energy security. It will also enable the fulfillment of a historic agreement to export around 130 Bcm of natural gas to Egypt, described as the largest export agreement in Israel's history. Gas exports to Egypt began soon after Leviathan started production in January 2020.

Future Plans and Regional Context

Plans are in hand for a further expansion of Leviathan's annual capacity to about 23 Bcm. This subsequent project, with an estimated cost of $800 million, would involve laying a fourth pipeline between the field's wells and its platform and drilling extra subsea wells. An FID on this additional project is expected in the coming years. Chevron's decision reflects confidence in the region's energy future, with company leadership noting that pragmatic US and regional energy policies are strengthening energy security across the Eastern Mediterranean and encouraging investment.

Partnership and Ownership

Chevron operates Leviathan with a 39.66% interest. The other partners are NewMed Energy with 45.34% and Ratio Energies with 15%. Following the FID announcement, the stock prices of both Israeli partners on the Tel Aviv Stock Exchange rose by about 3%. Chevron's other regional assets include the producing Tamar field offshore Israel, the under-development Aphrodite field offshore Cyprus, and assets in Egypt.