Israel Approves $6.7 Billion Leviathan Gas Deal
Translated & summarized from Hamal by baba
Israel's Commissioner of Competition approved a $6.7 billion deal for the Leviathan gas field to supply two new power plants. The agreement between NewMed Energy, Ratio Energies, and Dalia Energy Companies will begin gas supply on January 1, 2030, for 20 years. The deal involves firm supply commitments and a 'Take or Pay' clause, with gas prices linked to electricity tariffs.
The story in 6 lines · by baba
- Israel approved a $6.7 billion natural gas deal from the Leviathan field.
- The agreement is between NewMed Energy, Ratio Energies, and Dalia Energy Companies.
- Gas supply for two new power plants is set to begin January 1, 2030.
- The deal includes firm supply commitments and a 'Take or Pay' clause.
- The Commissioner of Competition found no significant harm to market competition.
- Gas prices will be linked to the general electricity tariff.
Israel's Commissioner of Competition, Michal Cohen, has approved a significant natural gas sale agreement valued at approximately $6.7 billion. The deal involves the Leviathan gas field's partners, NewMed Energy and Ratio Energies, supplying gas to Dalia Energy Companies Ltd. for two new power generation facilities.
The approval, granted after consultation with the Committee for Exemptions and Mergers, determined that the agreement would not significantly harm competition in the relevant markets. While the approval is unconditional, the Commissioner withheld approval for one clause related to secondary trading restrictions, referring the parties to self-examine its compliance with block exemption regulations.
The agreement, signed on May 19, 2026, stipulates the supply of natural gas from the Leviathan reservoir to two new combined-cycle power plants, each with a capacity of around 850 megawatts. These plants will be built by subsidiaries of Dalia at the Ashalim power station site in Ashdod and the Tzafit power station site.
Gas supply is scheduled to commence on January 1, 2030, and will continue for 20 years from the commercial operation date of the new units. NewMed Energy, holding 45.34% of Leviathan, and Ratio Energies, holding 15%, are committed to supplying a firm annual volume of approximately 1.3 billion cubic meters (BCM). This volume will increase to about 1.7 BCM annually from early 2034 to the agreement's end. Dalia is obligated to purchase or pay for a minimum annual quantity, calculated based on an adjusted annual amount, under a 'Take or Pay' (TOP) clause. The gas price is linked to the general electricity tariff, aligning with commitments made for the Leviathan field's export approval on December 17, 2025.
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