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(Bloomberg) — Israel ordered the resumption of production at its biggest natural gas field following a truce with Iran, setting the stage for higher exports to Egypt.
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Chevron Corp., which operates the Leviathan field, confirmed Wednesday that Israel’s Energy Ministry instructed it to resume production at the site in the Mediterranean Sea.
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The Israeli Energy Ministry also ordered the reopening of the smaller Energean Plc-operated Karish field, which supplies the domestic market.
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Chevron is now fully supplying customers in Israel and the surrounding region from both the Tamar and Leviathan reservoirs. Energean also said it’s working to restart operations.
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The resumption of the pipeline gas flows — after Israel’s Prime Minister Benjamin Netanyahu confirmed the ceasefire declared on Tuesday by US President Donald Trump — will come as a relief to Cairo, which has been making contingency plans for importing alternative fuels. The shutdowns forced Egypt to halt supplies to several industries as it prioritized power generation.
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Chevron was ordered to cease production at Leviathan June 13 as a precautionary measure following Israel’s attacks on Iran and Tehran’s subsequent retaliation.
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Ratio Energies, which has a stake in Leviathan, estimated it lost $12 million in revenue from the halt. NewMed Energy, another partner in the field, said its hit was about $39 million, including the royalties it gets from Karish. Chevron holds 39.66% in the Leviathan project, with NewMed owning 45.34% and Ratio Energies 15%.
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Gas customers received a force majeure notice for the period during which production was suspended. Israel also exports gas by pipeline to Jordan, another nation affected by the field’s shutdown.
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While some intermittent supplies resumed on June 20, the restart of the Leviathan field is likely to boost flows to pre-war levels. Egypt has also been buying large amounts of liquefied natural gas to avoid the power blackouts of previous summers. More LNG is slated to reach the country from July.
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Chevron kept producing gas from its other field, Tamar, but its supply was directed to Israeli domestic customers when Leviathan stopped, the company said in earlier statements.
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(Updates with confirmation from Chevron starting in the second paragraph.)
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