Chevron Leviathan Partners Secure 20-Year Gas Supply Deal in Israel

Chevron's partners in the Leviathan gas field have secured a 20-year supply agreement to provide natural gas to the Dalia Power Plants in Israel, according to a report from Rigzone. The initial supply under the contract involves up to about 1.3 billion cubic meters of gas. The U.S. energy giant Chevron is excluded from this specific partnership deal.

The development underscores the ongoing expansion and competition in the global liquefied natural gas (LNG) market. While the Bakken formation is primarily an oil-producing region, it also yields significant associated natural gas. The economics of gas production in the basin are influenced by global LNG prices and demand.

For Bakken operators, sustained international demand for natural gas supports broader market stability. Major supply contracts like the Leviathan deal contribute to the global supply landscape, which indirectly affects pricing benchmarks. Strong LNG demand can provide a floor for domestic natural gas prices, making the monetization of Bakken-associated gas more economically viable for operators.

Furthermore, the involvement of a major U.S. company like Chevron in international projects highlights the global scale of the energy industry. Chevron is a significant operator in the Williston Basin. Its activities abroad, even when excluded from a specific deal like this one, reflect the company's integrated global strategy, which can influence its investment and operational focus across all its assets, including those in North Dakota.

The 20-year term of the contract points to long-term planning and security in gas markets. For Bakken producers, long-term international demand contracts can signal stable future outlets for gas, encouraging continued investment in gas capture infrastructure and processing in the region, which remains a key environmental and economic priority for North Dakota.