Energean Closes Strong H1 2026 and Signs $1.4 Billion Sorek Gas Deal
Energean reported a strong first half of 2026 with a 45% jump in net profit and signed a $1.4 billion gas supply deal for the Sorek power plant, bringing its total future revenue backlog from major projects past $5 billion.
Energean, listed on the Tel Aviv and London stock exchanges, has closed a particularly strong first half of 2026 and announced another massive deal in the domestic market: the company signed a long-term agreement to supply natural gas to the Sorek power plant for a total of approximately $1.4 billion.
Under the 15-year contract, Energean will supply a total of up to 7.7 BCM of gas, with supply expected to begin upon the plant's launch in late 2029. The new deal completes the company's commitments to Israel's three new flagship electricity generation projects (alongside Kesem and Dalia 2), bringing its future contractual revenue backlog from them to over $5 billion.
The company's financial report shows that Energean recorded an impressive 45% surge in net profit after tax alongside a 35% increase in cash flow compared to the corresponding period last year. The positive figures follow a sharp recovery in production volumes since the Karish rig returned to full operation, with production surpassing the threshold of 180,000 barrels of oil equivalent per day in August.
Development of the Katlan Field and International Expansion
Simultaneously, the company continues to accelerate the development of the Katlan gas field, where over 60% of the total investment of $1.2 billion has already been invested, ahead of first gas delivery in the first half of 2027.
«We started the second half of 2026 in a strong financial and operational position, with a 35% increase in cash flow and a 45% increase in profit after tax compared to the same period last year, and with a decrease in net debt in the second quarter of 2026», stated Mathios Rigas, CEO of Energean. «All of this in a year when investments in the Katlan project are at their peak.»
Following the resumption of production in Israel, the group's production reached more than 180,000 barrels of oil equivalent per day in August, and we continue to progress in accordance with the annual production forecast.
Rigas added and emphasized the company's broad growth horizon for the coming years: «At the same time, we are laying the groundwork for the company's continued growth through a new gas sales agreement for the Sorek power plant, continued progress on the Ayna project in Croatia and the Nitzana export pipeline in Israel, as well as preparations for exploration drilling in Greece in partnership with ExxonMobil.»
Upgraded Liquid Processing Capabilities
Recall that last July, Energean announced the completion of the commissioning of the additional liquids treatment unit installed on the floating production storage and offloading (FPSO) rig off the coast of Hadera. This step increased liquid processing capacity from 18,000 to 31,000 barrels per day (with a production rate of about 7 million barrels per year), positioning the company as responsible for about 85% of Israel's offshore oil liquid production.
