Leviathan expansion – the goal: taking an investment decision and exposure to LNG
Delek Drilling (TASE: DEDR) today announces its new branding and its change of name to NewMed Energy. During a conference held today, Yossi Abu, CEO of NewMed Energy said that the success in production from Leviathan in the past two years, and especially the successful realization of the regional export vision, had in effect turned NewMed Energy into a leading international energy entity of utmost regional importance.
Expansion of Leviathan
Updated analyses showing the demand for natural gas (both regional and domestic) is rising constantly and justifies the expansion of production from the Leviathan field, in accordance with the approved development plans for 21 BCM annually. The second phase of Leviathan will concentrate on expansion of the infrastructures for the transmission of natural gas from the reservoir to additional consumers in its export markets along with exposure to the global LNG.
NewMed Energy is in an advanced process for the receipt of exploration licenses in Morocco as a leading partnership in its field with considerable professional knowledge and a proven track record in regional activity. NewMed Energy has identified Morocco as a country with tremendous potential in both geological and commercial terms. The Partnership’s Board of Directors have authorized NewMed Energy’s management to act, and the Partnership is currently in advanced negotiations for receiving exploration licenses in offshore Morocco, in both the Mediterranean and the North Atlantic Ocean.
Launch of Alternative Energy Division
Following an amendment to Tel-Aviv Stock Exchange articles in respect of traded oil and gas partnerships in July 2021, NewMed intends to launch an alternative energy division. In this context, the Partnership is moving forward to produce blue hydrogen and to capture carbon. Blue hydrogen, whose combustion does not emit pollutants, is the global fuel of the future for clean electricity generation and may constitute a low-carbon alternative for energy consumers. Future investments in renewable energies in the global market include development of new projects and the acquisition of mature projects.
The natural gas revolution in Israel which continues with the Leviathan Reservoir, has led to a reduction of approx. 70% in pollution caused as a result of gas supplied electricity generation in Israel, and to a significant reduction in greenhouse gas emissions. A reduction in air pollution can also be seen in Egypt and Jordan, countries to which gas from Leviathan is exported.
NewMed Energy is also undertaking the most advanced international environmental, transparency and corporate responsibility practices, and adopting measurable targets for its environmental footprint and positive impact. Around the time of its annual financial report, the Partnership will release a detailed ESG report.
Yossi Abu, CEO of NewMed Energy, said: “Our launch of NewMed Energy today is the pinnacle of a fundamental, deep and strategic process. With Delek Drilling’s well-known DNA, NewMed Energy will be an innovative and leading energy entity that will maximize the value of the existing core assets and promote significant processes such as the expansion of Leviathan and the development of the Aphrodite reservoir, alongside the launch of exploration and production of natural gas in other countries in the Middle East. NewMed Energy aspires to be a leader in the alternative energies industry, chiefly production of blue hydrogen from natural gas, in addition to carbon capture and entry into renewable energies. Exactly as Delek Drilling was, NewMed Energy will continue to be a key energy anchor in the region, with the aim of giving our investors both a stable dividend yield and growth.”
Source: Company Press Release