Leviathan Partners Cancel $6.7 Billion Gas Deal with Dalia Energies

NewMed Energy, holding approximately 45% of the Leviathan gas field, announced Friday that it and partner Ratio are canceling a major $6.7 billion gas supply deal with Dalia Energies. The agreement, intended to supply gas to two new power plants Dalia is building, was for 20 years, from 2030 to 2050, at a price of $4.7 per heat unit, with a renegotiation clause in 2041. The cancellation, according to the stock exchange announcement, is due to unmet conditions, specifically securing financing and approval from the Antitrust Authority. Discussions with the Antitrust Authority are ongoing and have been postponed twice. The partners have a 60-day window from the cancellation notice to fulfill the conditions.

Dalia Energies expressed surprise and rejected the cancellation, stating the notice is invalid and was not issued according to the agreement's terms. The company emphasized that discussions with the Antitrust Authority are still underway and no decision has been made. Market analysts suggest the cancellation might be a tactic by the Leviathan partners to improve deal terms, given the high demand for natural gas and profitable export opportunities.

Analyst Lior Vider noted the timing of the announcement, just before a holiday weekend, was likely intentional and warned of a potential legal battle. The industry anticipates the deal, crucial for the electricity and gas sectors, will eventually be finalized, though the final terms remain uncertain.