Chevron Partners Sign Long-Term Gas Deal for Israeli Power Plants

Chevron's partners in the Leviathan natural gas field offshore Israel have signed a significant, long-term supply contract with Dalia Power Plants, according to a report from Rigzone. The U.S. energy giant is specifically excluded from the 20-year agreement.

The contract initially involves supply volumes of up to approximately 1.3 billion cubic meters of gas, Rigzone reported on May 25, 2026. The deal underscores the ongoing global development and commercialization of major gas assets in which large international operators hold stakes.

For Bakken-focused operators and mineral owners, news of major international gas contracts serves as a reminder of the global scale of the energy market. Chevron is a major operator in the Williston Basin, holding significant acreage and production in the Bakken formation. However, this specific development is tied to its non-operated, international portfolio.

The deal highlights the strategic difference between a company's domestic shale operations and its international conventional projects. Bakken production is typically characterized by high-intensity drilling in a tight oil play, with natural gas often as a secondary product. In contrast, offshore fields like Leviathan are large-scale conventional gas developments designed for decades-long export and power generation contracts.

While the financial terms and specific partners were not disclosed in the report, long-term offtake agreements provide stable revenue streams for project owners. For a diversified major like Chevron, profits from international ventures can support overall corporate capital expenditure, which indirectly funds global operations. However, capital allocation for North American shale basins like the Bakken remains highly dependent on domestic commodity prices, well economics, and corporate strategy focused on shareholder returns.