The Palestine Power Generation Company axes Leviathan supply deal

The Palestine Power Generation Company has cancelled a 20-year gas supply deal with the Noble Energy-led Leviathan project in the wake of the US independent’s decision to put the giant project on hold after Israel’s anti-monopoly regulator pressed for the breakup of the venture.

Development of Leviathan have been thrown into doubt after Israel’s competition regulator recommended in December the break-up of what it says is monopoly control of the country’s offshore gas reserves by Noble Energy and Delek Group , which hold 85 percent of Leviathan.

In 2014, PPGC signed a 20-year deal to buy up to 4.75 billion cubic metres (bcm) of gas once Leviathan starts production later in the decade.

Source: Reuters