Chevron Announces Force Majeure After Israel Closes Leviathan Gas Field

Chevron Halts Production at Leviathan Gas Field Amid Security Concerns

Chevron has announced a force majeure at the Leviathan natural gas field in Israel after being instructed by the government to temporarily stop operations due to security risks. This marks the second disruption to gas supplies in the Eastern Mediterranean caused by tensions with Iran within the past year.

The Israeli energy ministry directed Chevron, the field's operator, to cease production at Leviathan following coordinated military actions between the United States and Israel against Iran, which led to retaliatory incidents throughout the region. NewMed Energy, a partner in the project, confirmed that the shutdown was based on guidance from security officials, who advised the consortium to adapt operations according to the shifting security landscape, including the potential for short-term production stoppages as the situation evolves.

Energean has also stated that it received orders to halt output at the Karish gas field.

Leviathan’s Role in Regional Energy Supply

Leviathan stands as Israel’s largest natural gas field, delivering energy to Israel, Egypt, and Jordan. In the first three quarters of 2025, the field supplied 8.1 billion cubic meters of gas to these countries, with Egypt receiving the majority share at 4.8 billion cubic meters.

This latest suspension mirrors events from June, when both Leviathan and Karish were shut down during a previous period of heightened conflict. That earlier disruption forced Egypt to reduce gas deliveries to several industries, including fertilizer manufacturers. Analysts now anticipate that Egypt will once again boost its LNG imports to compensate for the reduced flow of Israeli gas.

Expansion Plans Interrupted

The timing of the shutdown is notable, as the Leviathan consortium had recently approved the initial $2.3 billion phase of a major expansion, aiming to increase annual capacity from approximately 12 billion to 21 billion cubic meters. The field is estimated to contain 22.9 trillion cubic feet of recoverable gas and is central to a $35 billion export agreement with Egypt that extends through 2040.

By Julianne Geiger for Oilprice.com