January 18, 2026 - In a decisive move that reinforces the Eastern Mediterranean’s status as a critical hydrocarbon hub, Chevron Corp. and its consortium partners have reached a Final Investment Decision (FID) to expand the production capacity of the Leviathan natural gas reservoir. 

The $2.36bn project, known as Phase 1B, represents a significant escalation in the region’s energy infrastructure, aiming to boost output to around 21bn cubic metres (bcm) per year by the end of the decade. 

The decision comes at a time of heightened geopolitical complexity, signalling strong  investor confidence in the long term viability of Israeli offshore assets despite the volatile security environment. The project is spearheaded by the US energy major Chevron, alongside Israeli partners NewMed Energy and Ratio Energies, effectively doubling down on a resource that has become indispensable to the energy mix of Israel, Egypt, and Jordan. 

The expansion is not merely a capacity upgrade; it is a calculated entrenchment of energy diplomacy in the Middle East. Since coming onstream in December 2019, Leviathan has served as a cornerstone of Israel’s energy independence. The move to expand operations aligns with broader strategic goals driven by both Washington and regional capitals. 

Clay Neff, president of Chevron Upstream, emphasised the strategic nature of the asset. «Chevron is a leading energy player in the Eastern Mediterranean where we are focused on natural gas production and exports. Our operations are critical to meeting the growing energy needs of local and regional markets,» Neff said in a statement on the company’s website. 

Neff further articulated the geopolitical underpinnings of the investment, noting that the decision reflects confidence in the region’s energy future. «Pragmatic US and regional energy policies are helping to strengthen energy security across the Eastern Mediterranean and foster an environment that encourages investment in the Middle East and globally,» he added. 

This sentiment was echoed by Jack Baker, managing director of Chevron’s Eastern Mediterranean region, who highlighted the transnational impact of the project. «This milestone demonstrates our ongoing commitment to partner with the State of Israel to develop natural gas resources and provide essential energy to millions of people in Israel, Egypt and Jordan,» Baker said.