Author：Wall Street CN
The restart of Leviathan, Israel's largest natural gas field, after a 33-day shutdown has provided some relief to the already strained global natural gas market.
According to Bloomberg, a spokesperson for Newmed Energy LP, a shareholder in the Leviathan project, stated that the gas field has resumed supplying gas to both the Israeli domestic and export markets. Leviathan, operated by Chevron, is located in the eastern Mediterranean.It is Israel's most important natural gas asset and a key source of natural gas supply for Egypt.
Egypt typically receives about 1 billion cubic feet of natural gas daily from Israel via pipeline. The supply disruption had previously forced Cairo to urgently expand its liquefied natural gas imports and announce a series of energy rationing measures.
However, tensions in the Middle East did not subside. Just hours before and after Leviathan's restart, Iran launched a new attack, causing a fire at an oil refinery in Kuwait and damaging power and desalination facilities.A large natural gas processing facility in Abu Dhabi has also ceased operations due to a fire caused by intercepting falling debris.Following the announcement, Newmed's shares, listed in Tel Aviv, rose as much as 1.6% during the day.
War triggers production shutdowns, supply gaps impact global markets
On February 28 this year, after the outbreak of conflict between Israel and Iran, the Israeli authorities ordered the temporary closure of some gas fields for security reasons, and Leviathan was put into a state of shutdown, which lasted for 33 days.
The impact of the production shutdown quickly spread globally. On the one hand, the war disrupted shipping in the Strait of Hormuz; on the other hand, Qatar's world's largest liquefied natural gas plant was damaged by a missile attack. These multiple factors combined to further exacerbate the already tight international natural gas supply.
Egypt was the first to be affected and implemented emergency rationing measures.Measures included turning off streetlights earlier to conserve energy and urgently increasing liquefied natural gas imports to fill the gap. Egypt typically receives about 1 billion cubic feet of natural gas daily from Israel via pipeline.
Newmed: Production halt has limited impact on cash flow.
Newmed Energy disclosed in a regulatory filing on Friday that preliminary assessments indicate that...The one-month production halt at Leviathan is not expected to have a significant material impact on cash flow in 2026.
The company also stated that its project partners plan to "explore the possibility of seeking compensation from the state for the cessation of natural gas production."
Following the announcement, Newmed's shares, listed in Tel Aviv, rose as much as 1.6% during the day. Currently, Newmed holds approximately 45% of Leviathan, Chevron holds slightly less than 40%, and the remainder is held by Ratio Energies.
It is worth noting that another Israeli gas field, Karish, has not yet resumed production. Operated by Energean Plc, this field also ceased production at the government's request after the outbreak of war and has not yet resumed operations; the market remains cautiously optimistic about its restart timeline.
