Israel Suspends Leviathan Gas Field Operations Amid Iran Tensions

Israel Suspends Leviathan Gas Field Operations Amid Iran Tensions

William Faulkner 17-Jun-2025

Israel has ordered Chevron to halt production at the Leviathan gas field due to conflict with Iran. The platform, a major regional energy source, will remain offline until further notice. This comes amid plans to expand output to 21 bcm annually, raising concerns about energy security in the region.

The Israeli government has directed Chevron Mediterranean, a subsidiary of Chevron, to temporarily shut down operations at the Leviathan offshore natural gas field due to rising security threats amid escalating tensions with Iran. The directive was issued by Israel’s Minister of Energy and Infrastructures as a precautionary measure, suspending all production at the platform until further notice.

Chevron Mediterranean holds a 39.66% operating interest in Leviathan, alongside NewMed Energy (45.34%) and Ratio Energies (15%). In an official statement, NewMed Energy confirmed the production halt and added that operations would resume only in accordance with future government instructions.

Discovered by NewMed Energy in December 2010, the Leviathan reservoir is the largest natural gas find in the Mediterranean and one of the region’s most prolific producing assets, with an estimated 22.9 trillion cubic feet (tcf) of recoverable gas. After years of technical assessments covering the 330-square-kilometer field, the project partners approved the Phase 1A development plan in February 2017, targeting an annual production capacity of 12 billion cubic meters (bcm). Natural gas production began on December 31, 2019.

Located about 130 kilometers off the coast of Haifa within Israel’s Exclusive Economic Zone (EEZ), the Leviathan field is developed using four subsea wells. These wells are linked through a subsea manifold and twin 120-kilometer pipelines to an offshore processing platform. Once processed, the gas is transported to shore and integrated into Israel’s national grid. From there, it is distributed to domestic users as well as exported to Egypt and Jordan.

By the end of 2021, Leviathan had already produced close to 0.7 tcf of gas, demonstrating the success of Phase 1A in establishing a stable, cross-border energy supply chain. The field has since become a vital part of energy security in the Eastern Mediterranean region.

In February 2025, the project partners submitted an ambitious expansion plan to the Israeli government, proposing a $2.4 billion investment to boost production capacity. The plan includes drilling three new production wells, installing additional subsea infrastructure, and expanding the platform’s gas processing facilities. Once completed, the upgrades are expected to raise Leviathan’s output to 21 bcm annually, significantly enhancing regional energy supply capabilities.

The current suspension of operations, while temporary, highlights the vulnerabilities of critical energy infrastructure in geopolitically sensitive regions. The future of Leviathan's output now hinges on security developments and government decisions in the coming weeks.

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Natural Gas

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