What happened: The agreement will see the delivery of up to 130 billion cubic meters (bcm) of natural gas from the Leviathan field through 2040. Leviathan, Israel’s largest offshore gas reserve located in the Mediterranean, is estimated to hold around 600 bcm of gas.

The gas will be supplied via undersea pipelines, providing a more cost-effective alternative to liquefied natural gas (LNG), which requires expensive cooling and shipping.

Chevron, a US-based energy company, holds a 39.66% stake in the Leviathan project, while Israel’s NewMed Energy owns 45.34%, and the remaining 15% is held by Ratio Energies, also based in Israel. 

According to NewMed Energy, the deal has two phases. Beginning in 2026, the first phase will involve the sale of 20 bcm. A second phase, starting in 2029, will see the delivery of the additional 110 bcm of gas following the expansion of Leviathan’s production capacity and the construction of a new transmission pipeline to Egypt.