Israel and Egypt Sign Historic $35 Billion Natural Gas Deal
In a landmark development in Middle Eastern energy cooperation, Israel and Egypt have signed the largest gas deal in Israel's history, valued at a staggering $35 billion. The agreement marks a significant step forward in regional energy trade and geopolitics.
Under the terms of the deal, Israel will export 130 billion cubic meters (bcm) of natural gas from its Leviathan gas field to Egypt over a 15-year period, with exports continuing until 2040.
Strategic Importance
The Leviathan field, one of the largest offshore gas reserves discovered in the Mediterranean Sea, has become a cornerstone of Israel's energy exports. The deal cements Egypt’s role as a regional energy hub and enhances its capacity to re-export liquefied natural gas (LNG) to Europe, Africa, and Asia from its LNG terminals in Idku and Damietta.
“This agreement not only deepens the economic ties between Israel and Egypt but also strengthens the energy security of the entire region,” stated Israeli Energy Minister.
Egypt’s Ministry of Petroleum hailed the deal as a step toward bolstering the country’s energy independence and enhancing its position as a strategic energy corridor.
Economic and Geopolitical Impact
For Israel, the deal boosts its economy, diversifies its energy export routes, and helps leverage its natural resources for long-term growth.
For Egypt, it secures a steady supply of natural gas to meet rising domestic demand and increase LNG exports amid Europe's ongoing energy diversification efforts post-Russia-Ukraine crisis.
For the region, this cooperation may foster broader economic partnerships, including future joint ventures in renewable energy and infrastructure.
Background
This deal builds on a series of previous agreements between the two countries over the past decade. Israel had already been exporting gas to Egypt since 2020, but the scale and longevity of the new deal are unprecedented.
The Leviathan field, located about 130 km west of Haifa, began production in 2019 and is operated by a consortium led by Chevron, alongside Israeli partners.
Stay updated for more developments on Middle East energy diplomacy and strategic infrastructure deals