6.7 Billion Natural Gas Deal Approved for Israeli Power Plants

Israel's Competition Commissioner Michal Cohen has approved a major natural gas agreement between Dalia Power Energies Ltd. and the Leviathan gas field partners, NewMed Energy and Ratio Energies. Valued at approximately $6.7 billion, the deal covers the supply of natural gas for two new power generation facilities to be built by Dalia subsidiaries in Ashdod and Tzafit. The agreement, signed on May 19, 2026, is set to begin on January 1, 2030, and will run for 20 years.

The approval was granted unconditionally, though the commissioner noted concerns about secondary trading restrictions. The agreement includes flexible terms, such as price review mechanisms starting in 2041 and quantity adjustments to accommodate future demand. The Leviathan field, holding the largest gas reserves in Israel, supplied about 12% of the country's total gas consumption in 2025.

Commissioner Cohen acknowledged that while long-term agreements can create exclusivity, the deal's flexibility mitigates competition concerns. The power generation sector accounts for roughly 79% of total gas consumption in Israel, underscoring the significance of this agreement. The commissioner emphasized that the decision was based on the determination that the arrangement would not significantly harm competition.