Ahmed Kamel – Egypt Daily News
Israeli energy company NewMed Energy, the main partner in the Leviathan offshore gas field, has announced a significant amendment to its gas export agreement with Egypt. The updated deal, signed on August 7, 2025, could reach a total value of up to $35 billion, making it the largest gas export agreement in Israel’s history.
The amendment modifies a previous deal signed in 2019 with Blue Ocean Energy, which handles the transportation of gas to Egypt. It substantially increases the volume of natural gas exports in two phases and extends the supply timeline to at least 2040.
Expanded Supply Volumes
Under the new terms, the total contracted gas volume will increase by around 130 billion cubic meters (bcm). The first phase adds approximately 20 bcm, to be implemented as soon as the necessary infrastructure is complete. The second phase, which adds another 110 bcm, is conditional on Israel’s expansion of its gas transmission capacity.
As part of the first phase, daily supply will rise from 450 million cubic feet to 650 million cubic feet equivalent to a yearly increase from roughly 4.7 bcm to 6.7 bcm. If the second phase is activated, supply could climb to between 1.15 and 1.25 billion cubic feet per day, or around 12.9 bcm annually. This is expected to be possible by 2029, pending infrastructure upgrades.
Extended Timeline and Flexibility
The amendment also extends the export timeline by an additional 10 years from the start of the new infrastructure’s operation. If the second phase is implemented, deliveries will continue through 2040 or until the total contracted volume is met. If any contracted gas remains undelivered at that point, the agreement allows for an automatic extension of up to two more years.
Ownership of the Leviathan gas field is currently shared among NewMed Energy (45.34%), Chevron Mediterranean (39.66%), and Ratio Energies (15%).
Egypt: Strategic Move, Not a New Agreement
Responding to public debate, Egypt’s Ministry of Petroleum clarified that this is not a new agreement but an extension of the 2019 deal. Ministry spokesperson Moataz Atef said in a televised interview that the expansion aligns with Egypt’s long-term energy strategy, which includes securing diverse sources of natural gas.
“This isn’t a brand-new deal; it’s a revised and extended version of the existing 2019 agreement,” Atef said. “It forms part of our plan to diversify energy sources through imports from multiple countries, including Cyprus, and to reinforce Egypt’s position as a regional energy hub.”
He also noted that long-term contracts help Egypt ensure energy security: “These kinds of contracts allow us to have access to gas when we need it, without any obligation to take it if we don’t. What matters most is having guaranteed access.”
Ongoing Gas Cooperation
The Leviathan field has been exporting gas to Egypt since 2020 under the original agreement, which included 60 bcm of gas. According to NewMed, approximately 23.5 bcm have already been delivered to Egypt. The revised agreement ensures that these volumes will increase significantly over the coming years.
The deal is seen as a milestone in regional energy cooperation and could play a key role in both countries’ plans to expand gas trade and meet rising domestic and export demands.
