Israel Approves Extra Gas Exports, Leviathan Field to Be Expanded 

An aerial view taken from a helicopter shows the Leviathan natural gas rig off the coast of the Mediterranean coast, in northern Israel, April 26, 2023. (Reuters)
An aerial view taken from a helicopter shows the Leviathan natural gas rig off the coast of the Mediterranean coast, in northern Israel, April 26, 2023. (Reuters)
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Israel Approves Extra Gas Exports, Leviathan Field to Be Expanded 

An aerial view taken from a helicopter shows the Leviathan natural gas rig off the coast of the Mediterranean coast, in northern Israel, April 26, 2023. (Reuters)
An aerial view taken from a helicopter shows the Leviathan natural gas rig off the coast of the Mediterranean coast, in northern Israel, April 26, 2023. (Reuters)

Israel on Wednesday approved the export of more natural gas from its offshore fields to boost the economy and energy security, and its partners in the huge Leviathan project in turn said they planned to invest up to $500 million to expand its capacity.

Energy Minister Eli Cohen said the decision to more than double the amount of gas allowed for exports would strengthen diplomatic ties, improve Israel's energy security and bring an added windfall to the economy.

His ministry gave the green light for the export of an additional 118 billion cubic meters (bcm) of natural gas from the east Mediterranean reserves, beyond the 105 bcm previously approved. The companies will still need to get specific export licenses for the additional quantities.

The Leviathan partners, which include operator Chevron and Israeli companies NewMed Energy and Ratio Energies, said they now intend to invest $400-500 million to expand the project, which primarily exports to Egypt and Jordan.

That includes the project's front-end engineering design and long lead items, NewMed said. It added that additional exports could rise to 145 bcm if certain conditions are fulfilled.

"Demand for natural gas in Israel and regional markets is rising and as such we are preparing to expand production at the Leviathan project," said Ratio chief executive Yigal Landau.

Leviathan currently produces 12 bcm a year, and that will gradually rise to about 21 bcm a year, NewMed said. It said the group is continuing to negotiate new deals to sell gas domestically and internationally.

Israel exported 8.6 bcm of gas to Egypt in 2023, which is an increase of 39% over the prior year. It also supplied Jordan with 2.9 bcm in 2023.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.