NewMed Energy Secured Funding for Gas Expansion Project

The delay is likely to impact domestic energy supply and the country’s overall gas exports.

SEATTLE (Oil Monster): Local banks have provided finance of up to $400 million to Israel-based NewMed Energy LP. The money will help the business run, and it will also help with a project to expand the Leviathan gas and condensate field. The corporation will be able to obtain up to $200 million from each of the two lenders through the recently approved credit facilities.

The regulatory report said that the additional credit facilities is intended to be used by the firm in its ongoing operations, notably in accordance with Phase 1B of the Leviathan reservoir development plan.

Earlier, NewMed Energy declared that the proposed expansion of the Leviathan gas field is expected to witness a delay of almost six months. The operations are now expected to resume in April 2025. The main justification for the postponement has been the intensification of the ongoing Israel-Gaza war. Both the nation's overall gas exports and domestic energy supply are probably going to be impacted by the delay.

The Leviathan consortium committed to spending about $568 million to build a third pipeline last year. The two operational pipelines of Leviathan connect four subsea wells to an offshore platform over a distance of roughly 74.56 miles.

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