Investment decision reached for Israeli gas giant

Delek Group said about $3.75 billion is envisioned for the Leviathan gas field.
By Daniel J. Graeber  |  Feb. 23, 2017 at 7:38 AM
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Feb. 23 (UPI) -- The partnership in control of Leviathan, among the largest gas fields in the world, said they reached an investment decision that envisions flows by 2019.

Delek Group and its partners said Thursday they'd spend about $3.75 billion on development of the first phase of Leviathan, which envisions a production capacity of about 1.2 billion cubic feet per day. The piping of gas to its slated destinations is expected by the end of 2019.

Delek Group President and CEO Asaf Bartfeld said the investment decision was a win-win for all players involved.

"Developing Leviathan and pursuing more export agreements, coupled with supply to the domestic market, will ensure energy security for Israel and will add to Delek Group's stability," he said in a statement.

A good portion of the gas reserves in Leviathan are designated for exports. A Jordanian power company agreed last year to a take-or-pay scheme for gas from Leviathan. That agreement was worth an estimated $10 billion and was the first such agreement for the field.

In early December, the Leviathan partners said they reached an agreement with Dalia, the largest private power plant in Israel, to supply fuel for up to 20 years once production at the field begins.

The Israeli government gave its consent last year to revised operational plans after a previous arrangement was struck down by the Israeli Supreme Court. The partners were notified in March by the court that a deal with the government was unconstitutional, a ruling consistent with past concerns about competition.

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