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(Bloomberg) — Israel’s largest gas field resumed production after a 33-day shutdown triggered by the Iran war, likely providing some relief for markets that are struggling with supply.
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The Leviathan project can now resume supply for both the domestic market and exports, a spokesperson for stakeholder Newmed Energy LP told Bloomberg, a day after Israel’s energy ministry had said the restart was imminent. Leviathan is a massive gas field operated by Chevron Corp. in the Eastern Mediterranean Sea that’s crucial for supplying not just local Israeli requirements, but is also key for Egypt.
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Israel had ordered the temporary shutdown of some gas fields as a security measure after the conflict broke out on Feb. 28. It added to the crunch in the global market as the war snarled ship traffic through the Strait of Hormuz and missile attacks damaged the world’s largest liquefied natural gas plant in Qatar.
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In response, Egypt announced a series of energy-rationing measures because of soaring costs. The country typically receives about 1 billion cubic feet of natural gas per day via a pipeline from Israel, and the cutoff of supplies has previously sent Cairo scrambling to boost imports of liquefied natural gas.
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Leviathan’s resumption comes amid a spate of attacks around the Middle East. Hours after US President Donald Trump issued fresh threats against Iranian infrastructure to pressure Tehran to start peace negotiations, the Islamic Republic launched fresh attacks that caused a fire at an oil refinery and damaged power and water desalination plant in Kuwait. A major gas processing facility in Abu Dhabi also halted operations after falling debris from interceptions resulted in a blaze.
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Newmed said in a filing Friday that initial assessments indicate the monthlong stoppage of Leviathan is not expected to have a material impact on the expected cash flow in 2026. The partners in the project intend “to examine the possibility of receiving compensation from the state in connection with the cessation of gas production.”
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Newmed shares in Tel Aviv rose as much as 1.6% on Friday. The company holds about 45% stake in Leviathan, while Chevron has just short of 40% and. Ratio Energies the remainder.
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Another Israeli gas field called Karish, which is operated by Energean Plc, was also ordered shut by the government in the wake of the war. Operations there have yet to resume.
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