Israel's Leviathan and Karish natural gas fields have resumed operations after a near two-week shutdown due to regional conflict, reinstating vital energy exports to Egypt and Jordan.
The Leviathan and Karish fields, managed by Chevron and Energean, respectively, recommenced operations after a ceasefire was reached between Israel and Iran.
The reopening of these fields, which had been closed since 13 June, is set to restore natural gas supplies under existing sales agreements.
The move is expected to increase gas exports, raise tax revenues, and provide greater operational flexibility for the electricity and industrial sectors.
Earlier this month, Israel recommenced limited natural gas exports, prioritising domestic needs.
The cessation of operations at Leviathan led to a loss of $12m (NIS40.62m) in revenue, according to a regulatory filing by Chevron's partners in Leviathan, NewMed and Ratio Energies, reported Reuters.
The companies are considering seeking compensation from the state for the production halt.
Leviathan, which currently produces 12 billion cubic metres (bcm) of gas annually for Israel, Egypt and Jordan, is projected to increase its output to approximately 14bcm by 2026.
Israeli gas is a significant energy source for Egypt, accounting for 15–20% of its consumption, as per the Joint Organisations Data Initiative.
The disruption forced Egyptian fertiliser producers to cease operations due to the gas supply shortfall.
However, Egyptian Prime Minister Mostafa Madbouly has announced that gas supplies to factories will recommence from Friday, as stated in a cabinet release.
According to Egyptian sources, imports from Israel are expected to ramp up gradually, with full operations likely by Saturday.
Egypt also imports liquefied natural gas (LNG) for regasification. Currently, only one of the country's three floating storage and regasification units (FSRUs) is operational.
The Energos Eskimo FSRU is set to become operational shortly, enhancing Egypt's capacity to regasify imported LNG and integrate it into the national gas grid.
