Israel ordered its biggest natural gas field to be temporarily shut down, the country's energy ministry said.
The closure of the offshore Leviathan field follows security concerns after Israel's attack on Iran and Tehran's promise to retaliate. The shutdown follows Energean Plc also suspending its gas production on orders from the ministry following the rapid escalation of geopolitical tensions.
The disruptions are likely to affect regional supplies, mostly to Egypt, just as the North African country's gas demand is rising with the summer heat. A prolonged period of lower Israeli supply may force Cairo to bring bring forward LNG purchases, further tightening global markets. Gas prices in Europe rose as much 6.6%.
The Leviathan field in the eastern Mediterranean is run by Chevron Corp. The project supplies gas to domestic customers and also to neighboring nations of Jordan and Egypt. Energean's Karish field solely meets domestic demand in Israel. It was not immediately clear if Tamar, the other field operated by Chevron, has also been suspended.
Chevron referred questions to Israel's energy ministry, adding that “our people and facilities are safe.”
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