Israel has officially approved a historic natural gas deal with Egypt, valued at nearly $35 billion, marking the country’s largest energy export agreement to date. The deal will see Israel supply gas from the Leviathan field, helping Egypt stabilize its energy supply while strengthening regional cooperation.
The agreement, originally signed in August 2025 with Chevron and Israeli partners, faced delays due to pending regulatory and contractual issues. Israeli Prime Minister Benjamin Netanyahu confirmed that the deal is now fully authorized, enabling long-term gas exports to Egypt and addressing its energy shortages.
Details of the Israel-Egypt Gas Agreement
- Deal Value: 112 billion shekels (~$34.67 billion)
- Gas Source: Leviathan field, Israel
- Purpose: Stabilize Egypt’s energy supply, reduce reliance on LNG imports
- Partners: Chevron and Israeli energy companies
- Impact: Strengthens regional energy cooperation and ensures sustainable supply
Egypt has experienced a decline in domestic gas production since 2022, making this deal crucial for maintaining stable electricity generation and reducing dependency on expensive imported LNG.
Strategic and Regional Significance
Experts highlight that the Israel natural gas deal represents a major step in Middle Eastern energy collaboration. By exporting gas to Egypt, Israel not only secures long-term revenue streams but also reinforces energy interdependence in the region.
The deal could also pave the way for future joint energy infrastructure projects, including pipeline enhancements and potential LNG facilities, enhancing the resilience of regional energy networks.
Economic and Political Implications
For Israel, the agreement marks a record-setting deal in its energy sector. Analysts note that long-term gas exports will boost the economy and support domestic energy development.
For Egypt, the deal reduces reliance on costly LNG imports and ensures a stable supply for power generation, industrial use, and residential consumption. Political analysts view the deal as a milestone in Israel-Egypt relations, reflecting growing cooperation beyond traditional diplomatic channels.
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