Leviathan Partners Signed Agreement to Supply Natural Gas to Eshkol Power Plant

SEATTLE (Oil Monster): Leviathan partners- Chevron, NewMed Energy and Ratio Oil Corp. have reached an agreement to supply natural gas to Eshkol Power Energies towards operation of the Ashdod-based power plant owned by Dalia Power Energies. The $650 million deal will supply gas from the field off the Mediterranean coast.

The state-owned Israel Electric Corp had sold Ashdod-based Eshkol power station to Eshkol Power Energies in 2023 for about $2.45 billion, as part of the series of structural reforms announced by the Israeli government. The reform permits entry of independent power producers into the market. The Eshkol power station has a capacity of approximately 1,680 megawatts

The contract will be valid for a period of seven years. As agreed, the Leviathan partnership will supply natural gas of about 0.5 billion cubic meters every year from the gas field. The delivery of gas is expected to commence in the month of June this year.

Oved Debby, CEO, Dalia Power Energies noted that the contract marks the completion of preparations needed for operating the Eshkol power plant. It will help boost competition in the electricity market, which in turn will lower the energy prices, he added.