Israeli exploration and production (E&P) company Delek Drilling is planning to make a final investment decision on further development of Leviathan field by the end of 2020. Delek Drilling considers either using an LNG export terminal in Egypt or building a floating liquefied natural gas (FLNG) production facility at sea to boost gas exports. The company is currently negotiating with banks a US$2.5bn financing.
In August 2019, the partners in the Leviathan giant offshore gas project in Israel, namely Delek Drilling (45.34%), Noble Energy (39.66%), and Ratio Oil Exploration (15%), said they were considering developing a FLNG facility to facilitate gas exports. The FLNG project would have a liquefaction capacity of 2.4 to 5 Mt/year. Partners have signed preliminary agreements with Golar LNG and Exmar LNG on FLNG plans. They will now review plans to issue a final investment decision on the FLNG and to select the company that will finance, build, operate and maintain the facility.
The Leviathan gas field was discovered in 2010 and is estimated to hold 605 bcm of gas reserves. The Tamar gas field has been operational since 2013. Gas deliveries from the Tamar and Leviathan offshore reservoirs to Egypt started in January 2020, in line with an US$19.5bn agreement signed in October 2019. Gas sales to Egypt are for domestic use and re-exports in the form of LNG.