NewMed Energy and its partners in the Leviathan project offshore Israel have taken a final investment decision (FID) to lay a third gas pipeline with an investment of $568m.

The new subsea transmission pipeline will be laid from the production wells in the Leviathan field to the platform located in the Eastern Mediterranean Sea.

It will enable expansion of the maximum gas supply capacity from the Leviathan project to INGL’s transmission system from nearly 1.2 billion cubic feet (BCF) per day to around 1.4BCF per day, from mid-2025.

NewMed Energy’s share in the pipeline project will be around $258m, which will be met from its own resources and its current cash flows.

The company’s partners in the Leviathan project are Chevron Mediterranean and Ratio Energies, which hold stakes of 39.66% and 15%, respectively. NewMed Energy holds a stake of 45.34% in the project, which produced its first gas in December 2019.

Ratio Energies said that its share in the pipeline project will be around $85m. The new pipeline is slated to become operational in H2 2025.

NewMed Energy CEO Yossi Abu, has been quoted by Reuters, as saying: “Expansion of the production capacity and future liquefaction via a designated liquefaction facility will allow us to supply more natural gas to the local, regional, and very soon also the global market.”

Discovered in 2010, the Leviathan field is situated within the Israeli Exclusive Economic Zone (EEZ), nearly 130km off the coast of Haifa.

Located at a water depth of 5,500ft, the Israeli gas field is projected to have 22 trillion cubic feet (Tcf) of recoverable natural gas resources out of a total in-place resource estimated to be 35Tcf.

Production from the gas field is enabled by four subsea wells that are linked, through a subsea manifold and two pipelines of 120km lengths, to an offshore platform. At the platform, all the processing of the gas is carried out.

The Leviathan project has been serving Israel, Egypt, and Jordan.