NewMed Energy reported Tuesday that the Leviathan gas field partners—NewMed, Chevron and Ratio Energies—have signed an amendment to their natural gas export agreement with Egypt, increasing the total contracted volume by 130 billion cubic meters (BCM).
The deal is expected to generate approximately $35 billion in revenue for the field’s rights holders. Following the announcement, NewMed Energy’s shares rose more than 4% on the Tel Aviv Stock Exchange. Delek Group, which owns NewMed, climbed around 3.5%, while Ratio’s stock gained over 5%.
The amendment was signed with Blue Ocean Energy, the purchasing company, and will increase gas exports to Egypt in two phases: an initial phase of roughly 20 BCM and a significantly larger second phase of around 110 BCM.
Once the first phase takes effect, the daily gas supply obligation will rise from 450 million standard cubic feet (MMSCF) per day (approximately 4.7 BCM annually) to 650 MMSCF per day (around 6.7 BCM annually). This increase is contingent on the completion of the Ashdod-Ashkelon offshore pipeline segment by Israel Natural Gas Lines, as well as the completion of the partners’ third pipeline project.
Subject to fulfillment of the second-phase conditions, the daily supply will increase substantially to between 1,150 and 1,250 MMSCF, equivalent to 11.9–12.9 BCM annually. The required infrastructure upgrades are expected to be completed by 2029, according to the partners.
Under the amended agreement, the supply period for the first phase will extend until either 10 years after completion of the offshore Ashdod-Ashkelon segment and the third pipeline, or until the buyer consumes the full contracted quantity, whichever comes first.
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If the second phase goes into effect, the supply period will be extended further to December 31, 2040, or until the full contracted volume is delivered—again, whichever comes first.
The partners estimate that the total revenue from the additional volumes (100%) will amount to approximately $35 billion. This estimate assumes the buyer will fully consume the contracted quantities and is based on the partners’ forecasts for natural gas and Brent oil prices over the supply period.
The amendment’s implementation remains subject to several conditions, including regulatory approvals, export licenses, and consent from tax authorities. These conditions must be met by September 30, 2025, with an option for extension.