Chevron Inks Major Gas Deal in Israel's Leviathan Field
The 20-year supply contract highlights global LNG competition but has no direct reported impact on Bakken operations.
Chevron Corporation, a major operator in North Dakota's Bakken formation, is part of a partnership securing a significant long-term natural gas supply deal in Israel, according to industry news service Rigzone. The report states Chevron's partners in the Leviathan gas field have agreed to supply gas to the Dalia Power Plants under a 20-year contract.
The contract initially involves supply volumes of up to about 1.3 billion cubic meters, Rigzone reported. The U.S. energy giant itself is notably excluded from this specific supply agreement, though it operates the broader Leviathan project.
For Bakken operators and royalty owners, the development underscores the intensely competitive global market for natural gas and liquefied natural gas (LNG). Major integrated companies like Chevron are actively securing long-term offtake agreements for gas resources worldwide to feed growing global demand, particularly from power generation sectors.
While the deal does not directly involve Bakken-produced gas, it reflects the strategic priorities of large-cap producers with global portfolios. Activity and investment decisions in one basin can be influenced by success and revenue streams generated in another. A strong international gas market can provide financial stability for these companies, potentially supporting sustained investment across their asset base, including shale plays like the Bakken.
The Bakken formation is primarily an oil play, but it also produces significant associated natural gas. The economics of Bakken wells are therefore indirectly tied to gas prices and the broader global supply landscape. Long-term contracts like the Leviathan deal help establish price stability in key demand regions, which can influence global benchmark prices over time.
The news highlights the connected nature of global energy markets, where developments in the Eastern Mediterranean can have ripple effects on the strategies of companies operating in North Dakota's Williston Basin. For now, the direct impact on Bakken operations from this specific contract appears neutral, as it involves gas from a separate international asset.
Source
Rigzone
