Israeli company Delek Drilling is set to sell about 10 billion cubic metres of gas from the Leviathan field located under the Mediterranean Sea.
This is a significant rise in the sales forecast compared to the figure from the summer of last year when the company projected its sales for 2021 at approx. 8.9 billion cubic metres of gas sourced from the Leviathan deposit.
As the company explains, sales will now increase as a result of new deals being struck, which – in addition to the currently on-going contracts for raw materials export to Egypt – will swell the volume of natural gas sold in 2021.
Moreover, Delek Drilling announced that the currently identified gas reserves in the Leviathan field amount to 649 billion cubic metres. For comparison: a year ago, the mining concern reported that the deposit contains 620 billion cubic metres of raw material.
In total, companies working the Leviathan field (i.e. Delek Drilling, Ratio Oil Exploration and Chevron Corporation) sold approx. 4.2 billion cubic metres of natural gas in the second half of last year, 5 percent more than previously forecast for the period.
The forecast sales volume for this year, however, is still lower than the early 2020 forecasts envisioning sales of 10.8 billion cubic metres. Delek Drilling explains that the decline is due to the global economic turmoil caused by the COVID-19 pandemic and the decline in demand for natural gas in the region.
One of the main recipients of natural gas from the Leviathan offshore deposit is Egypt, with both Egypt and Israel planning to increase gas supplies to Cairo. Remarkably, an offshore pipeline is set to be built to bridge the gap between the Leviathan field and production infrastructure of liquefied natural gas in Egypt. Thanks to this, the African state would be able increase its LNG exports.
By Annie Cook (photo: Delek Drilling)