Israel Signs $35B Gas Deal with Egypt to Boost Regional Energy Stability

Israel has finalized its largest-ever natural gas export agreement, signing a $35 billion deal with Chevron and its partners, NewMed and Ratio, to supply gas from the Leviathan field to Egypt. Prime Minister Benjamin Netanyahu announced the landmark deal in a televised statement, describing it as “the largest gas deal in Israel’s history” and emphasizing its role in strengthening regional stability.

Under the agreement, Israel will supply approximately 130 billion cubic meters of gas to Egypt through 2040 or until all contract obligations are fulfilled. The Leviathan field, located off Israel’s Mediterranean coast, has estimated reserves of around 600 billion cubic meters, making it a key energy asset for Israel and the broader region.

The deal addresses a critical energy shortfall in Egypt, which has struggled to meet domestic demand since its own production began declining in 2022. Cairo has spent billions of dollars importing liquefied natural gas to cover the gap, prompting the country to increasingly turn to Israel as a reliable energy partner.

Chevron, which had been awaiting the necessary Israeli permit to export gas, welcomed the approval. The company had indicated in November that it was nearing a final investment decision to expand the Leviathan field, contingent on export permissions.

Analysts say the agreement could help stabilize energy prices in Egypt, while also boosting Israel’s role as a regional energy supplier. Netanyahu highlighted that the deal had been held up due to outstanding regulatory and commercial issues but expressed confidence that the agreement would contribute to long-term regional energy security.

The historic pact underscores the growing energy cooperation between Israel and Egypt and reflects a broader trend of regional partnerships aimed at addressing energy shortages and ensuring supply stability across the Eastern Mediterranean.