Leviathan worries for Woodside

Israeli LNG project exploring fresh regional pipeline export options.

Woodside Petroleum (WPL) is facing fresh uncertainty over its role in the multi-billion-dollar Leviathan gas project off the coast of Israel as reports suggest the project is exploring regional export pipeline options that would see gas sent to Greece and two Egyptian liquefied natural gas (LNG) plants, according to The Australian.

Woodside had struck a $US2.2 billion ($A2.4 billion) deal to take a 30% stake in the gas field and operate an LNG export project that would see LNG frozen to a liquid and shipped abroad.

However, the outlook for Woodside's role has been called into question as Leviathan partners, Noble Energy, among others, have seen a reduced need to pursue far-flung export options amid rising regional LNG demand that could be satisfied by pipelines rather than an export plant.

Uncertainty over Israel's gas export policy has also cast doubt on Woodside's role, with the export policy stuck in Israel's High Court, though the policy is expected to be resolved as soon as this month, The Australian added.

The outcome of the court ruling could determine whether Woodside will have to renegotiate the terms of its deal.