Fossil Energy – Leviathan
Chevron has declared force majeure at Israel’s Leviathan natural gas field after the government ordered a temporary suspension of production for security reasons.
This is the second time in less than a year that hostilities with Iran have disrupted gas flows in the Eastern Mediterranean.
Following joint U.S./Israeli strikes on Iran and subsequent retaliatory action across the region, Israel’s energy ministry directed operator Chevron to shut in Leviathan.
Partner NewMed Energy said the suspension followed guidance from security authorities. They noted that regulators had instructed the consortium to adjust operations in line with evolving security conditions, including the possibility of temporary production halts as the situation develops.
Leviathan is Israel’s largest gas field and supplies Israel, Egypt and Jordan. In the first nine months of 2025, the field sold 8.1 billion cubic metres of gas to these three markets, with Egypt accounting for over half of this figure at 4.8 billion cubic metres.
This shutdown is reminiscent of the disruption in June, when Israel halted production at both Leviathan and Karish during a previous escalation. This forced Egypt to reduce gas supplies to certain industries, including fertiliser producers. Analysts now expect Cairo to increase LNG imports again to offset the loss of Israeli volumes.
The timing is ironic. The Leviathan consortium has recently approved the first phase of a $2.3 billion expansion project, which is designed to increase capacity from approximately 12 Bcm to around 21 Bcm per year. The field is estimated to hold 22.9 trillion cubic feet of recoverable gas, and is the basis of a $35 billion long-term export deal with Egypt running until 2040.
