Ahmed Kamel – Egypt Daily News
Israeli Prime Minister Benjamin Netanyahu announced Wednesday evening the approval of a landmark natural gas agreement with Egypt valued at 112 billion shekels, or roughly $35 billion, marking what he described as the largest gas deal in Israel’s history.
Speaking in a televised address alongside Energy Minister Eli Cohen, Netanyahu said the agreement had been approved after careful consideration of Israel’s security interests. He confirmed that the deal involves US energy giant Chevron but did not disclose detailed contractual terms. “First and foremost, the deal requires companies to sell gas at a good price to Israeli citizens,” Netanyahu said, emphasizing domestic economic considerations alongside export revenues.
The announcement comes amid months of uncertainty surrounding the agreement, which had reportedly been delayed due to political and security tensions between Israel and Egypt. While Israeli media have extensively covered the deal, Egyptian authorities have yet to issue an official confirmation or public statement.
Reports indicate that Netanyahu had previously halted progress on the agreement, insisting that it could not move forward without his direct approval. This pause coincided with Israeli accusations that Egypt had violated the 1979 peace treaty by increasing military deployments in the Sinai Peninsula, allegations Cairo firmly denied. The treaty, signed in Washington following the Camp David Accords, formally ended decades of conflict between the two countries and included provisions for Israel’s withdrawal from Sinai and the area’s demilitarization.
Details of the gas arrangement began to surface publicly in August, when Israeli media reported that NewMed Energy had signed a new export agreement to supply Egyptian markets with natural gas from Israel’s offshore Leviathan field. The deal expands on an existing export framework established in 2019, which covered approximately 60 billion cubic meters of gas.
Under the newly approved agreement, Israel’s Leviathan partners are set to supply Egypt with an estimated 130 billion cubic meters of natural gas through 2040, in exchange for about $35 billion in revenue. Israeli media have reported that Egypt’s Blue Ocean Energy (BOE) is the buyer.
The Leviathan field, one of the largest offshore gas discoveries in the eastern Mediterranean, is operated by a consortium in which Chevron holds a 39.66 percent stake following its acquisition of Noble Energy in 2020. NewMed Energy controls 45.33 percent, while Ratio Oil Exploration holds the remaining 15 percent.
The deal is seen as strategically significant for both countries. For Israel, it reinforces its position as a major regional energy exporter while generating long-term revenue and strengthening ties with international energy companies. For Egypt, the gas supplies are critical to meeting domestic demand and supporting its role as a regional energy hub, particularly through its liquefied natural gas export infrastructure.
Israeli media previously reported that Egypt had considered turning to Qatar to secure alternative gas supplies if the Israeli deal failed to materialize. Against that backdrop, recent coverage described a shift in Netanyahu’s stance, culminating in his decision to give final approval for the agreement to proceed.
The announcement adds to a growing web of energy cooperation between Israel and Egypt over the past five years, reflecting a pragmatic economic relationship that has endured despite periodic political tensions. As regional demand for energy continues to rise and global markets seek diversified supplies, the agreement underscores the increasingly central role of eastern Mediterranean gas in Middle Eastern geopolitics.
