The partners in Israel’s Leviathan offshore gas field – NewMed Energy (TASE: NWMD) (45.34%), Chevron Mediterranean (39.6%), and Ratio Energies (TASE: RATI-L) – announced the signing of an agreement to supply the Haifa Group with 0.75 billion cubic meters of gas over seven years. The deal is worth $150 million.
Haifa Group said the natural gas from the Leviathan field will be used for its routine operational needs and as raw material for the ammonia production plant currently under construction in Mishor Rotem in the Negev. The agreement will come into effect upon completion of the ammonia plant in 2025. This is the second agreement signed by Haifa Group with Leviathan partners, the first agreement was signed for five years and is currently being extended until the new agreement comes into effect.
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The agreement with Haifa Group follows a long-term agreement recently signed between Leviathan partners to supply natural gas to the Eshkol power plant, owned by Dalia Energy, Union Group and Meshek Energy. As part of the seven-year agreement, Leviathan partners will supply Eshkol Energy Power Ltd. with 0.5 billion cubic meters of natural gas annually. The natural gas supplied by Leviathan is used by the two combined cycle production units at the Eshkol site. Supply began last June, with the transfer of the production units to the new owners.
Haifa Group CEO Moti Levin said: “Haifa Group is proud of the agreement signed with Leviathan Partners, which symbolizes a long-term partnership and constitutes an important pillar in the group’s development momentum with a $700 million investment in the Mishor Rotem plant, reinforcing the company’s sustainability principles. At the heart of the investment is the ammonia plant, which will use solar energy and natural gas as raw materials, strengthening Israel’s independence in ammonia production, reducing dependence on imports and contributing to food security.”
This article was published in Globes, Israeli Business News – en.globes.co.il – on September 24, 2024.
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