Energy Firm Sues Over Canceled $6.7 Billion Leviathan Gas Deal
Translated & summarized from Ice by baba
Dalia Energy is suing NewMed and Ratio Energy in London to enforce a $6.7 billion gas supply deal from the Leviathan field, after the partners unilaterally canceled the agreement. The sellers cited a missed deadline for regulatory approval, but Dalia believes the motive is to renegotiate for higher prices. The cancellation could significantly increase Dalia's power station operating costs, with a London arbitration expected to last over a year.
The story in 6 lines · by baba
- Dalia Energy is suing NewMed and Ratio Energy in London over a canceled $6.7 billion gas deal.
- The deal involved gas supply from the Leviathan field to Dalia's new power stations.
- NewMed is owned by billionaire Yitzhak Tshuva.
- The sellers cited a missed regulatory approval deadline as the reason for cancellation.
- Dalia believes the sellers want to renegotiate for higher prices.
- The arbitration in London is expected to last at least a year.
Dalia Energy has filed a lawsuit at the International Court of Arbitration in London (LCIA) to enforce a major gas supply agreement from the Leviathan field. This legal action follows the unilateral cancellation of the deal by partners NewMed, owned by billionaire Yitzhak Tshuva, and Ratio Energy.
The dispute centers on a significant agreement, valued at approximately $6.7 billion, intended to provide long-term energy security from 2030 to 2050. The natural gas was slated to supply two new power stations being built by Dalia in Ashdod and Tzafit.
The cancellation by NewMed and Ratio was formally attributed to the failure to secure approval from the Competition Authority within the stipulated 90-day period. However, a disagreement exists regarding the exact start date for this timeframe. Energy market observers suggest the underlying motive is commercial, with the sellers seeking to renegotiate terms for higher prices or shorter durations.
The cancellation could have severe consequences for Dalia, which is constructing the two 850-megawatt power stations at a cost of about 10 billion shekels, with financing from Bank Hapoalim, Leumi, and Discount. The stations are scheduled to begin operation in July 2029.
Dalia's current supply plan relies on a mix of gas from Energean's Karish-Tanin field (35%) and Leviathan (65%). The collapse of the deal with NewMed and Ratio could significantly increase the operating costs of its power stations. The arbitration in London, expected to last at least a year, will determine the future of this substantial gas deal.
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