Oil and natural gas exploration and production company Noble Energy operates the Leviathan gas field with 39.66% while Delek Group subsidiaries, Delek Drilling and Avner Oil Exploration, each own 22.67% stake in project.
Ratio Oil Exploration holds the remaining 15% of the project.
Under the terms of the 20-year agreement signed in December 2013, PPGC is to buy about 4.75 billion cubic meters of gas from the Leviathan project for its 200MW power plant in Jenin, Palestine.
PPGC has cited delay in acquiring approvals for the development of project as the reason behind cancelling the contract.
Israel Antitrust Authority observed in late 2014 that the Delek Group and Noble Energy held a monopoly over all of the offshore gas reservoirs in country.
The firms also own the nearby Tamar field which has an estimated 10 trillion cubic feet of natural gas.
Delek said that the cancellation of the agreement will be effective within 30 days, unless the Antitrust Authority approves the field development by then.
With an estimated reserves of 22 trillion cubic feet (622 bcm), Leviathan is the largest offshore gas discovery in the region.
Production at the $6.5bn project was scheduled to commence in 2018.
