NewMed Energy Cancels Major Gas Deal Amid Competition Concerns
NewMed Energy, which holds a 45% stake in the Leviathan gas field, has announced the cancellation of a significant NIS 6.7 billion ($1.8 billion) deal to supply gas to Dalia Power's "Dalia 2" and the planned "Abshel" power stations. The company cited competitive concerns and the likelihood that the Israel Competition Authority would not approve the transaction.
Dalia Power expressed surprise at the announcement and refuses to accept the cancellation, stating that the notice is premature. NewMed Energy reportedly believes it is not liable for any penalty, as certain conditions precedent for the deal's fulfillment were not met. This dispute could potentially lead to legal action if not resolved.
The original agreement, signed in May 2026, stipulated a relatively low price of $4.7 per heat unit. This pricing was influenced by NewMed Energy's commitment to supply gas domestically at a reduced cost as a condition for exporting gas to Egypt.
The cancellation's impact on NewMed Energy's export capabilities remains unclear. Notably absent from the original deal's discussions was Chevron, the operator of Israel's Tamar and Leviathan gas fields.
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