Leviathan production capacity exceeds expectations

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Leviathan, Israel’s biggest gas field, is reporting a much greater production capacity than previously announced, according to Leviathan partner Ratio Energy (TASE: RATI). The laying of the third pipeline was supposed to increase the production capacity from Leviathan from 12 BCM (billion cubic meters) per year to 14 BCM, but according to Ratio’s first quarter results, the field now has an annual production capacity of 15.8 BCM. There are still bottlenecks in transmission and export capacity, but the market is hinting at an expected deal between Leviathan and OPC’s new power plant in Hadera.

The other partners in Leviathan also confirm that Leviathan’s production capacity has jumped far above expectations. NewMed Energy (TASE: NWMD), the biggest partner (45%) in Leviathan, reported, «The systems upgrade on the platform, which allows for an increase in gas production capacity to approximately 14 BCM per year, it should be noted that upon completion of the project in March 2026, it has been proven that the maximum gas production capacity is, as of the date of approval of the report, 15.8 BCM per year». That is, 13% more than expected, and almost doubling the increase following the completion of the third pipeline. According to one of the Leviathan partners, «We always make conservative assumptions before it is proven in practice.»

The main problem: the bottlenecks

This higher production from Leviathan will have a positive impact on the revenue of all Leviathan partners: NewMed (45%), Chevron (40%) and Ratio (15%). But there are still bottlenecks in conveying gas to the domestic economy and for export to Egypt and Jordan. The Leviathan partners report efforts to remove these barriers: the Ashdod-Ashkelon pipeline will be completed next month, after delays and allow increased exports. The new Nitzana pipeline will be built in 2028, also after two years of delays, thus releasing the entire bottleneck.

This will allow the Leviathan partners to significantly increase their production, which will be available for both the domestic economy and export The law requires Israeli gas reserves to first meet the needs of the Israeli economy, with only the remaining quantity exported. So increasing Leviathan’s production capacity will allow the reservoir to meet both the needs of the local economy and to fulfill the huge $35 billion deal signed between Leviathan and Egypt. The higher gas reserves will also make it possible to supply more gas in an emergency situation in Israel in the event of a shutdown of the other gas fields, as happened several times in recent years.

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Leviathan partners NewMed and Ratio recently signed a $6.7 billion deal with Dalia Energies to supply the Eshkol power station, which was privatized in a NIS 9 billion deal.

Furthermore, OPC Energy (TASE: OPCE) reports advanced talks with Leviathan for its new power station, which is under construction in Hadera, in a deal worth an estimated $1.3 billion. If the deal is signed by the end of June, OPC could receive a preferential availability rate from the Electricity Authority, to encourage the construction of additional power plants close to demand areas. Given that Leviathan is currently able to produce more gas than expected, it would be the natural candidate to sign such a deal with OPC.

Published by Globes, Israel business news — en.globes.co.il — on May 27, 2026.