Dalia Energy signs $6.7b Leviathan gas deal

Dalia Energy has signed an especially large natural gas deal over 20 years for its two large power stations: the new Eshkol and Tzafit power plants that it will build. This is the first gas deal to be made in the domestic economy since the new framework agreement, and according to estimates, the price is $4.7 per thermal unit, and will be gradually revised with the increase in electricity tariffs.

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This is a good value deal for Dalia, partly due to the framework agreement that requires Leviathan to sell at a relatively cheap price to the local economy as a condition for export. US giant Chevron, which operates both the Leviathan and Tamar reservoirs, is conspicuously absent from the deal. According to the joint announcement by Dalia, and Leviathan partners NewMed Energy (TASE: NWMD) and Ratio Energy (TASE: RATIO), the reservoir will supply Dalia’s power plants with 1.3 BCM per year starting in 2030. In 2035, the amount is expected to increase, with the rise in Dalia’s production capacity, to 1.7 BCM per year. The overall deal is expected to be worth about $6.7 billion.

The new gas framework agreement that Leviathan has been subject to since the end of 2025 is a condition for receiving the final export permit to Egypt, which is their biggest source of income, both due to the quantities (Leviathan is export-oriented) and the much higher price that can be obtained for it. So in a sense, more expensive exports subsidize cheaper domestic consumption.

In 2041, the price will be reopened for negotiation, with 10% allowed in each direction. If the agreed price is too high for Dalia, they reserve the right to reduce their gas consumption by up to 30%.

The entire deal is on a take or pay basis – meaning that Dalia must consume the full amount of gas it has committed to in the contract or pay the amount in any case.

Published by Globes, Israel business news – en.globes.co.il – on May 20, 2026.

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