Production at the Leviathan gas field and its exports to Egypt look set to remain on hold with Israel extending its state of emergency until 14 April. The prolonging of the decision that came into effect on 28 February, following US-Israeli military strikes against Iran, means that the Israeli state maintains authority over if and when to restart production and exports.

Leviathan partner NewMed Energy had been confident of a quick return to production, with its CEO Yossi Abu saying mid-month that it and Chevron could be given the thumbs up to restart operations in “hours to days, not weeks.”

Why this matters: Prior to the shut-off, Leviathan was utilizing its newly expanded 1.2 bcf/d capacity to supply Egypt with 830 mmcf/d of gas in January. The resumption of flows would significantly ease the energy strain facing Egypt and open up a much more affordable option to spiraling LNG import costs.

In the much longer term, the timetable for receiving flows from Cyprus’ 3.1 tcf Cronos gasfield has also been pushed back, with industry publication Mees reporting that contractual disputes between Eni and Cyprus have stalled plans to reach a final investment decision (FID). Until recently, the project’s partners Eni and TotalEnergies had been expected to announce the FID at the Egypt Energy Show that kicks off today.

The delay looks likely to make Egypt’s hopes for first gas in 2027 very unlikely, with Mees reporting that “a lengthy delay would push potential first gas past 2028.” Egypt is keen to make progress on receiving flows so it can liquify the natural gas at its facilities in Damietta for re-export as LNG, in addition to leaning on the option to divert 20% of flows to the domestic market when needed.

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