Dalia Energy Declares Leviathan Gas Deal Active, Partners Silent
Translated & summarized from Calcalist by baba
Dalia Energy has unilaterally informed investors and partners that a $6.7 billion natural gas purchase agreement from the Leviathan field is now active. This comes after NewMed Energy and Ratio, who hold a majority stake in Leviathan, had previously canceled the deal. The Israel Competition Authority has since stated there are no antitrust concerns, but NewMed and Ratio have yet to respond to Dalia's latest announcement, leaving the agreement's status unclear.
The story in 5 lines · by baba
- Dalia Energy declared a $6.7 billion gas deal with the Leviathan field active, despite prior cancellation by partners.
- NewMed Energy and Ratio, majority owners of Leviathan, have not responded to Dalia's latest announcement.
- The Israel Competition Authority found no antitrust issues with the gas deal.
- The agreement was intended to supply gas to two Dalia power stations starting in 2030.
- NewMed and Ratio had previously cited unmet conditions, including Competition Authority approval, for canceling the deal.
Energy company Dalia announced to investors on Tuesday that a deal to purchase natural gas from the Leviathan field, valued at $6.7 billion, will go into effect. A similar notification was sent to Leviathan field partners NewMed Energy, Ratio, and Chevron. However, this is currently a unilateral declaration by Dalia.
NewMed Energy and Ratio, who announced the cancellation of the agreement just two weeks prior, have not yet responded to Dalia's latest announcement, leaving the deal's future uncertain. The agreement, signed in May, is intended to secure natural gas supplies for two power stations Dalia is constructing in Ashkelon and Tzefit. NewMed Energy and Ratio, jointly holding approximately 60% of the Leviathan field, committed to supplying 1.3 billion cubic meters (BCM) of gas annually to the stations starting in January 2030, with the amount expected to increase to 1.7 BCM per year. The contract is valid for twenty years from the commercial operation date of the stations.
The deal required approval from the Israel Competition Authority. NewMed Energy and Ratio did not wait for this approval and informed Dalia in late September that the agreement was canceled due to unmet conditions, primarily the timely receipt of Competition Authority approval. Dalia immediately stated it did not accept the cancellation and considered the agreement to remain valid.
On Tuesday, the Israel Competition Authority announced that there are no antitrust issues with the agreement and its implementation would not significantly harm competition. It remains to be seen whether the cancellation was indeed due to concerns about Competition Authority approval or if NewMed Energy and Ratio are sticking to their decision to cancel for other reasons. NewMed Energy and Ratio have not yet responded to requests for comment.
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