Massive $35 Billion Gas Agreement Between Israel and Egypt to Enhance Energy Security

Israel has secured its largest natural gas export agreement, finalizing a $35 billion deal with Chevron, NewMed, and Ratio to deliver gas from the Leviathan field to Egypt. Prime Minister Benjamin Netanyahu announced this pivotal deal, calling it “the largest gas agreement in Israel’s history” and highlighting its importance for regional stability.

This agreement will see Israel provide around 130 billion cubic meters of gas to Egypt until 2040, or until all obligations are met. The Leviathan field, located off the Mediterranean coast of Israel, holds an estimated 600 billion cubic meters of gas, establishing it as an essential energy resource for both Israel and the surrounding areas.

The deal is a critical response to Egypt's energy challenges, as the nation has faced difficulties meeting domestic demand since its production began to decline in 2022. Consequently, Cairo has spent substantial sums on importing liquefied natural gas, increasingly relying on Israel as a dependable energy supplier.

Chevron has expressed enthusiasm over receiving the necessary Israeli permit to proceed with gas exports. The company indicated in November that it was approaching a final investment decision to expand operations in the Leviathan field, pending these export approvals.

Experts believe this agreement may stabilize energy prices in Egypt while bolstering Israel’s status as a regional energy supplier. Netanyahu noted that prior regulatory and commercial hurdles had delayed the deal but expressed optimism that it would enhance long-term energy security within the region.

This landmark agreement highlights the deepening energy cooperation between Israel and Egypt, mirroring a wider trend of regional collaboration aimed at mitigating energy shortages and ensuring supply reliability across the Eastern Mediterranean.