Chevron & Israel Announce Launch of New Gas Pipeline Project to Egypt

Per Reuters, Chevron Corporation CVX has partnered with Israel Natural Gas Lines to begin work on the Nitzana natural gas pipeline, a strategic project designed to carry gas from the Leviathan field to Egypt. The initiative aims to strengthen Israel’s energy ties with its neighbor while providing much-needed relief to Egypt, which has struggled with an energy crunch and rising Liquefied Natural Gas (LNG) import costs.

Leviathan Project: Biggest Natural Gas Field in the Mediterranean

Leviathan is one of the biggest deepwater natural gas fields in the world and the Leviathan reservoir is the most stable and strongest energy hub in the Mediterranean. The Leviathan field in the Levant Basin has witnessed about 85 trillion cubic feet of hydrocarbon resources discovered over the past two decades. Fueled by the enormous hydrocarbon resources in the field, the natural gas reserves have increased by about 40% over the last 10 years. The Leviathan project, partnered by New Med Energy (holding a 45.34% stake in the project), Chevron Mediterranean (39.66%) and Ratio Energies (15%), is one of the biggest natural gas developments in the Mediterranean that supplies gas to Israel, Egypt and Jordan.

Boosting Regional Energy Exports

The Leviathan field has an estimated reserve of 600 billion cubic meters, which underpins a recent $35 billion deal to supply gas to Egypt. Once completed in about three years, the Nitzana pipeline will add capacity of around 600 million cubic feet of gas per day, bringing Israel’s total exports to Egypt above 2.2 billion cubic feet (bcf) daily.

Egypt’s Energy Crisis

Egypt is grappling with a wave of natural gas shortages as peak demand strains the power grid. Increased natural gas demand is forcing the government to adopt emergency measures to prevent blackouts. This comes despite Egypt’s aspirations to position itself as a regional energy hub and major LNG supplier, highlighting the tension between export ambitions and domestic needs. The situation is worsened by slow economic growth, financial instability and lower-than-expected gas output, particularly at the Zohr field, which is facing technical issues. To ease the crisis, Egypt is seeking to secure more long-term LNG supply deals and receive shipments to ensure a stable gas supply for power stations.

Future Supply & Growth Prospects

Beyond Leviathan, other producers are eyeing Nitzana’s potential. Energean, another gas producer, plans to transport up to 2 billion cubic meters annually from its Katlan field, expected to begin production in 2027. Together, these efforts position the pipeline as a cornerstone of regional energy cooperation, supporting Egypt’s energy stability while boosting Israel’s role as a gas exporter.

CVX’s Zacks Rank & Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companiesthat participates in every aspect related to energy — from oil production to refining and marketing. Currently, CVX has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Vitesse Energy, Inc. VTS, Canadian Natural Resources Limited CNQ and Enbridge Inc. ENB. While Vitesse Energy sports a Zacks Rank #1 (Strong Buy) at present, Canadian Natural and Enbridge carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

New York-based Vitesse Energy is an independent energy company engaged in the acquisition, development and production of non-operated oil and natural gas properties principally in the United States. The Zacks Consensus Estimate for VTS’ 2025 revenues indicates 16.6% year-over-year growth.

Calgary-based Canadian Natural is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The Zacks Consensus Estimate for CNQ’s 2025 revenues indicates 5.9% year-over-year growth.

Calgary, Alberta-based Enbridge is a leading energy infrastructure company engaged in the transportation of energy through the most extensive and advanced crude and liquids pipeline system. The Zacks Consensus Estimate for ENB’s 2025 earnings indicates 9.5% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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