Chevron partners scrap a $6.7B gas deal for Leviathan

Chevron partners NewMed Energy and Ratio Energies have ended talks and cancelled a potential 20-year contract to supply natural gas from Israel's offshore Leviathan field to Dalia Energies. The deal, valued at approximately $6.7 billion in total revenue, would have supplied gas to two planned domestic combined-cycle power plants in Ashdod and Tzafit, each with a capacity of about 850 megawatts.

The supply agreement excluded Chevron directly. It called for initial sales of up to 1.3 billion cubic meters (45.91 billion cubic feet) per year starting in 2030, rising to about 1.7 billion cubic meters annually from 2034 or 2035. NewMed Energy expected about $5 billion of the revenue and planned to provide 75.14 percent of the agreed volume from its own share of production.

On September 24, 2026, the sellers notified Dalia of the termination, citing the non-fulfillment of conditions precedent by the specified deadlines. Dalia objected, stating in a Tel Aviv Stock Exchange disclosure that the termination notice was invalid and noting that discussions regarding an exemption application remain ongoing at Israel's Competition Authority.

Chevron operates the Mediterranean field with a 39.66 percent stake through Chevron Mediterranean Ltd. NewMed Energy holds 45.34 percent, and Ratio Energies holds 15 percent. Discovered in 2010 off Haifa, Leviathan began output in December 2019 and sold 10.8 billion cubic meters last year. Early in 2026, the Chevron-led group approved a $2.36 billion investment decision for Phase 1B to lift capacity to about 21 billion cubic meters annually starting in late 2029.