Gas battle: Leviathan partnership cancels agreement with Dalia Energies; Dalia claims: "The cancellation is invalid"

The gas agreement between the Leviathan partnership and Dalia Energies, signed just four months ago, has blown up. The sellers claim non-fulfillment of conditions, the buyer claims the cancellation is illegal, and the parties are headed toward a legal dispute.

The Leviathan partnership (Newmed Energy, Chevron, and Ratio Energies) announced the unilateral cancellation of its natural gas supply agreement with Dalia Energy Companies. According to them, the reason is the non-fulfillment of the contract's precedent conditions, primarily the failure to receive the Competition Authority's approval on time. Dalia, for its part, rejects the notice, claiming it is invalid and that discussions with the Competition Authority are still ongoing, which is leading the parties into a sharp legal dispute.

Just four months after it was signed, the gas supply agreement between the Leviathan partnership and Dalia Energy Companies is running aground and igniting a sharp dispute between the parties. In coordinated filings to the stock exchange, the partnerships in the Leviathan reservoir—Newmed Energy, Chevron, and Ratio Energies—announced that on September 24, 2026, they sent Dalia a notice canceling the natural gas supply agreement signed in May 2026.

According to the filings by the reservoir partnerships (Newmed holds 45.34%, Chevron holds 39.66%, and Ratio holds 15.00%), the reason for the cancellation is "the non-fulfillment of all precedent conditions to the agreement in accordance with the timelines set therein" (2026-01-088521, 2026-01-088542). Filings from the other side, Dalia Energies and its parent company Mashav Energy, indicate that the core of the dispute is a regulatory approval that has not yet been granted. According to them, "the sellers' position is based on the fact that as of this date, the Competition Authority's approval has not yet been received" (2026-01-088527, 2026-01-088536).

However, Dalia Energies did not let it pass. A day after receiving the cancellation notice, on September 25, the company notified the Leviathan partnership that, in its view, "the cancellation notice is invalid" (2026-01-088527). Dalia claims that the notice was given "not in accordance with the provisions of the agreement," adding that as of this date, "discussions are taking place at the Competition Authority regarding the exemption application submitted by the sellers, and its final position has not yet been received" (2026-01-088536).

This essentially exposes the core of the dispute: while the Leviathan partnership views the deadline for obtaining Competition Authority approval as sufficient grounds to cancel the contract, Dalia argues that as long as the regulatory proceeding is ongoing and the Authority has not yet spoken, the cancellation is illegal. The Leviathan partnership, for its part, has already responded to the rejection of the cancellation, reporting that they "reject the buyer's claim and take the position that, in accordance with the terms of the agreement, the cancellation notice is valid" (2026-01-088521).

The head-on collision between the energy giants casts a major question mark over the massive gas deal and marks the beginning of what appears to be a complex legal battle. Both parties are digging in their heels, with each interpreting the contract terms and the regulatory situation to its own advantage. Now, the ball is expected to pass to the legal advisors, who will have to decide whether the agreement will be upheld or come to a bitter end in court.