Israel Greenlights Landmark $35 Billion Natural Gas Export Deal With Egypt, Marking Largest Export Agreement in Its History
Israel has officially approved its largest export agreement to date, giving the green light to a landmark natural gas deal with Egypt that is set to significantly deepen energy cooperation between the two nations and reshape the Eastern Mediterranean energy landscape.
The long-anticipated agreement, confirmed this week by Israeli Prime Minister Benjamin Netanyahu, will see natural gas from Israel’s Leviathan offshore gas field supplied to Egypt over a 15-year period. Despite recent political and security tensions in the region, the deal underscores a shared strategic commitment to energy security, regional collaboration, and long-term economic growth.
“This deal with the American Chevron company, together with Israeli partners, will supply gas to Egypt,” Prime Minister Netanyahu said in a televised address, highlighting the international and strategic significance of the agreement.
Signed in August 2025, the agreement provides for the export of approximately 130 billion cubic meters of natural gas to Egypt, with an estimated total value of up to $35 billion. This positions the deal as one of the most substantial cross-border energy transactions ever concluded in the Eastern Mediterranean, and the largest export deal in Israel’s history.
Deal Resumes After Temporary Suspension
The agreement had faced a temporary pause in recent months amid concerns over national interest protections, pricing mechanisms, and supply security for the Israeli domestic market. In November, Israel’s Energy and Infrastructure Minister, Eli Cohen, emphasized that the government would not move forward unless safeguards were firmly in place.
“Our priority is ensuring Israel’s energy security and fair pricing,” Cohen stated at the time, noting that unresolved issues had delayed final approval.
Following intensive negotiations, those concerns have now been addressed. Industry partners agreed on measures to ensure that exports to Egypt will not disrupt Israel’s domestic supply or price stability, clearing the final hurdle for the deal’s implementation and restoring momentum to the project.
Major Industry Players and Strategic Infrastructure
The Leviathan gas field, located off Israel’s Mediterranean coast and holding reserves of nearly 600 billion cubic meters, is jointly operated by Chevron Corp., NewMed Energy, and Ratio Petroleum Energy. The partners will lead the phased expansion of production and export capacity over the coming years.
To support the agreement, Israel and Egypt plan to upgrade and expand critical infrastructure, including the construction of a new cross-border pipeline via Nitzana and capacity enhancements at the Leviathan field. Phase one of the project is expected to deliver approximately 20 billion cubic meters of gas by 2026, with further expansions continuing through 2040.
Boost for Egypt’s Energy and LNG Ambitions
For Egypt, the deal represents a major boost to its energy strategy. The imported gas will support growing domestic demand, help alleviate recurring power shortages, and enable the country to scale up its liquefied natural gas (LNG) exports to international markets.
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The agreement strengthens Egypt’s role as a regional energy hub while reinforcing Israel’s position as a key natural gas exporter and strategic energy partner in Africa and the Middle East.
A Historic Milestone in Regional Energy Cooperation
First agreed upon in August, the Israel–Egypt gas deal stands as a historic milestone in bilateral relations and regional economic integration. Beyond its commercial scale, the agreement highlights how energy cooperation continues to serve as a stabilizing force, even amid broader geopolitical challenges.
As exports ramp up in the coming years, the deal is expected to deliver long-term economic benefits, enhance energy security for both countries, and further integrate Eastern Mediterranean gas into global markets.
