Israel's Leviathan Gas Rig Resumes Operations, Impacting Energy Markets and Iran War Context

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Israel's Energy Ministry has announced that the Leviathan natural gas rig, the country's largest offshore gas field, will resume operations after being shut down due to security concerns related to the ongoing conflict with Iran. The Leviathan field's return to production is seen as a concrete indicator that the security situation around Israel's Mediterranean coast has improved, with implications for energy markets in Egypt, Jordan, and Europe.

Why it matters

The Leviathan field is a critical piece of energy infrastructure for Israel, accounting for over 70% of the country's electricity generation. Its shutdown since the start of the conflict with Iran has forced Israel to rely on more expensive and polluting fuels. The resumption of operations will enable the supply of natural gas to all customers, the resumption of gas exports to neighboring countries, a rise in state tax revenues, and greater flexibility in managing the electricity and industrial sectors.

The details

The Leviathan field was discovered in 2010 and began production in 2019. It produces 12 billion cubic meters of gas per year, a figure that is expected to rise to 14 billion cubic meters in 2026. The field is operated by a partnership of Chevron, NewMed Energy, and Ratio Energies. Since the start of the conflict with Iran, both the Leviathan and the Karish platforms have been shut down due to security concerns, as an attack could have catastrophic consequences.

• The Leviathan field began production on December 31, 2019.
• The field's production is expected to rise to 14 billion cubic meters per year by 2026.

What’s next

Chevron's unit, Chevron Mediterranean Limited, is now working on restarting the Leviathan platform and resuming regular production within a few hours.