Israel and Egypt Finalize $35 Billion Gas Agreement for Enhanced Energy Security

Post by : Mina Rahman

Israel has secured its largest natural gas export contract ever, formalizing a $35 billion agreement with Chevron, NewMed, and Ratio to deliver gas from the Leviathan field to Egypt. Prime Minister Benjamin Netanyahu highlighted this pivotal agreement in a broadcast statement, declaring it “the most significant gas deal in Israel’s history,” and stressing its importance for regional stability.

This agreement entails the delivery of around 130 billion cubic meters of gas to Egypt until 2040 or upon completion of contract requirements. The Leviathan field, positioned off the Mediterranean coast of Israel, boasts estimated reserves of approximately 600 billion cubic meters, making it a crucial energy resource for Israel and its neighbors.

The deal comes as a response to Egypt's pressing energy deficiencies, which have escalated since domestic production began to wane in 2022. To fill this gap, Egypt has invested heavily in imports of liquefied natural gas, increasingly relying on Israel for consistent energy supply.

Chevron, which was awaiting the necessary permits for gas exports, has received the green light. In November, the company had indicated that it was close to a final investment decision to expand the Leviathan field, conditional on obtaining export approvals.

Experts believe that this agreement could stabilize energy costs in Egypt while enhancing Israel’s position as a crucial regional energy player. Netanyahu noted that the deal had previously faced delays due to unresolved regulatory and market concerns but expressed optimism that it would bolster long-term energy security in the region.

This landmark agreement highlights the deepening energy collaboration between Israel and Egypt and signals a broader movement towards regional partnerships to tackle energy shortages and ensure stability in supply throughout the Eastern Mediterranean.