Chevron’s local partners in Israel, NewMed Energy LP and Ratio Energies LP, have reached an agreement with Dalia Energy Companies Ltd to supply natural gas from the Mediterranean project to two planned domestic power plants in the Jewish country.
The 20-year contract, which excludes the United States energy giant, initially involves up to about 1.3 billion cubic metres (45.91 billion cubic feet) a year of gas, NewMed said in a stock filing.
NewMed said it accounts for 75.14 percent of the agreed volume. “Starting from a date to be determined by the Buyer, which shall fall between 1 January 2034, and 1 July 2035, until the end of the term of the agreement, the daily natural gas quantities shall be increased such that their aggregate annual volume will be approx. 1.7 BCM,” NewMed said.
Each of the two combined cycle gas turbine projects, which will rise in Ashdod and Tzafit, has a capacity of about 850 megawatts, according to NewMed.
The sellers expect approximately $6.7 billion in total revenue, of which around $5 billion would be for NewMed. According to NewMed, Leviathan, discovered in 2010 off the coast of Haifa city, started production December in 2019 under Phase 1A.
Last January the Chevronled consortium made a final investment decision worth $2.36 billion to proceed with Phase 1B. Expected to start operation in the second half of 2029, the first stage of the Phase 1B project aims to increase capacity to about 21 Bcm a year, according to NewMed.
NewMed already announced August 2025 Israel’s Energy and Infrastructures Ministry had approved Phase 1B. Announcing the FID for Phae 1B stage 1, NewMed also said all conditions for the entry into force of an amended agreement signed 2025 between the Leviathan consortium and their current customer Blue Ocean Energy had been fulfilled.
