Operator Chevron Corp. and its Israeli companions within the Leviathan undertaking have suspended development of a 3rd pipeline that can serve the gasoline discipline as tit for tat inflames the Center East battle.
“Attributable to escalation of the safety state of affairs, the work on laying the subsea pipeline as a part of the Third Gathering Pipeline Undertaking has been suspended till April 2025 or thereabouts, relying on the performing contractor’s time tables and work schedule, and on the regional safety state of affairs”, Leviathan majority proprietor NewMed Power LP stated in a regulatory disclosure.
NewMed Power expects the halt to delay the pipeline undertaking, which can develop the gasoline provide capability from Leviathan to Israel’s gasoline grid to about 1.4 billion cubic toes a day (Bcfd), by round six months.
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The battle that adopted Hamas’ assault on Israel October 2023 rages one yr on as regional energy Iran, a benefactor of Hamas and Lebanese and Syrian militant teams allied with the Palestinian quest for statehood, turns into more and more concerned. Iran fired missiles into Israel few days in the past after Israel’s assassination of Hezbollah leaders. Israel has since intensified armed operations in Lebanon, with strikes additionally reported in Syria.
“Additional to the most recent developments within the safety state of affairs and relying on, inter alia, operational and technical issues, the Operator, on occasion, halts manufacturing from the Leviathan reservoir for sure durations of time, in accordance with the platform’s working directions and security procedures”, NewMed Power informed the Israel Securities Authority and the Tel Aviv Inventory Change. “As of the date of this report, the combination hurt from the stated manufacturing halts has not been materials relative to the annual manufacturing quantity”.
Final yr, NewMed Power introduced that the Leviathan consortium agreed to take a position roughly $568 million to develop the third pipeline.
NewMed Power owns 45.34 p.c of the 127.41-square mile Leviathan gasoline reservoir offshore Israel, which it says is the biggest within the Mediterranean with 22.9 trillion cubic toes of recoverable gasoline. Chevron Mediterranean Ltd., which entered the Leviathan consortium following a merger that gave the US vitality big full possession of Noble Power Mediterranean Ltd. in 2020, holds 39.66 p.c. Ratio Energies LP owns the remaining 15 p.c.
The brand new conduit will develop the utmost provide delivered to Israel Pure Gasoline Traces Ltd. from about 1.2 Bcfd to about 1.4 Bcfd from mid-2025, NewMed Power stated in a submitting July 2, 2023.
Leviathan has two working pipelines stretching a complete of 74.56 miles by way of which output from the undertaking’s 4 subsea wells is carried to an offshore platform that processes the gasoline.
“Whereas the present growth is strictly primarily based on the Israeli pure gasoline grid and on a pipeline community, Part B of the undertaking is anticipated to incorporate a major liquefaction element, that can develop Leviathan’s buyer base past the Jap Mediterranean, to Europe and the Far East”, NewMed Power says on its web site. “To that finish, industrial negotiations are being held with two present liquefaction amenities in Egypt, whereas an choice for liquifying pure gasoline on a floating facility anchored within the Israeli EEZ [exclusive economic zone] is being explored”.
The consortium can be contemplating constructing a fourth pipeline, in accordance with a submitting by NewMed Power August 1, 2024.
The businesses have acquired an preliminary allow from the Power Ministry to lift Leviathan’s gasoline allotment for abroad markets.
The federal government permits, “as of the current time, the export of extra pure gasoline from the Leviathan reservoir in a complete amount of as much as 118 BCM [4.2 trillion cubic feet], which can enhance to as much as 145 BCM [5.1 Tcf] upon success of sure circumstances”, NewMed Power stated in a submitting June 26.
The approval is for the Part 1B undertaking of the deepwater gasoline discipline. Leviathan, found 2010 off the coast of Haifa metropolis, began manufacturing December 2019 underneath Part 1A, which might produce as much as about 424 Bcf yearly. Leviathan “since has grow to be a cornerstone of gasoline provide in Israel, Egypt and Jordan”, NewMed Power says on its web site.
Part 1B goals to lift Leviathan’s annual manufacturing to as a lot as 742 Bcf and develop its export market past the Center East to Europe and Asia.
To contact the creator, electronic mail jov.onsat@rigzone.com
