Chevron, along with its partners, has agreed on a $24m investment to boost natural gas production at the Tamar gas field off Israel’s Mediterranean coast.
The initiative is part of a broader strategy to increase the field’s output capacity to approximately 1.6 billion cubic feet (bcf) per day to satisfy domestic energy demand and expand exports to Egypt.
Go deeper with GlobalData
As reported by the Times of Israel, Chevron Eastern Mediterranean business unit managing director Jeff Ewing said: “Reaching [final investment decision] FID for phase two of Tamar’s expansion reflects Chevron’s ongoing commitment to partnering with the State of Israel to continue development of its energy resources for the benefit of domestic and regional natural gas markets.”
The first phase involves laying a 150km pipeline from the field to the platform, with the aim of increasing daily natural gas supply from 1.1bcf to 1.2bcf.
The second step entails reinstalling the current compressors at the Ashdod onshore terminal, reported Reuters.
The entire project, with a completion target of 2025, is estimated to cost $673m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataWith a 25% stake, Chevron is the operator of the Tamar gas field.
The other partners in the field are Isramco with a 28.75% interest, Mubadala Energy from Abu Dhabi with an 11% stake, Tamar Investment 2 (11%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest (3.5%).
The investment decision follows the recent announcement of a new gas sales agreement with Blue Ocean Energy, the Egyptian importer of Israeli gas.
The Tamar partners have agreed to supply an additional four billion cubic metres (bcm) of natural gas annually to Egypt for 11 years, totalling around 43bcm.
In 2023, Israel authorised the expansion of natural gas exports to Egypt from the Tamar field.
Approximately one-third of the additional output from the Tamar platform will serve Israel’s domestic energy requirements.
The Tamar platform, located near Ashkelon, experienced a five-week shutdown following the conflict between Israel and the Palestinian militant group Hamas in October 2023.
