Israel Secures Major Gas Export Deal with Egypt Worth $35 Billion
Israel has signed a landmark $35 billion natural gas export agreement with Egypt, marking the largest energy deal in Israel’s history. The agreement involves the supply of 130 billion cubic meters of gas from Israel’s Leviathan offshore gas field to Egypt through 2040 or until the full contracted volume is delivered.
The deal is divided into two phases. The first phase, expected to begin in early 2026, will deliver 20 billion cubic meters of gas to Egypt after new pipeline connections are completed. The second phase will supply an additional 110 billion cubic meters after the Leviathan field undergoes a major expansion and a new transmission pipeline is constructed via Nitzana, near the Israel-Egypt border.
Leviathan, one of the world’s largest deep-water gas discoveries, began supplying the Israeli market in late 2019 and started exporting gas to Egypt in January 2020. This new agreement significantly expands the existing arrangement, tripling previous export volumes. The gas will be delivered via Blue Ocean Energy, with the Leviathan consortium, including NewMed Energy, Chevron, and Ratio Oil Corp., overseeing the project.
The deal strengthens Egypt’s role as the Eastern Mediterranean’s energy gateway and enhances Israel’s energy security and regional influence. With Europe seeking alternatives to Russian gas, this partnership positions both countries as strategic suppliers in a shifting global energy market. Energy officials from both nations have hailed the agreement as a milestone in bilateral cooperation and a model for regional integration.
To support the expanded exports, Israel will invest in critical infrastructure, including a third pipeline from Leviathan to its production platform and an upgrade to the Ashkelon-Ashdod pipeline, boosting its capacity to Egypt. Leviathan’s annual output is expected to rise from 12 billion cubic meters to over 14 billion cubic meters, eventually reaching 21 billion cubic meters once the expansion is complete
The agreement also contributes to the development of economic ties with Arab partners and promotes stability in the Eastern Mediterranean. Despite mounting diplomatic tensions over Israel’s military campaign in Gaza, the deal underscores the growing interdependence of regional energy economies and the strategic importance of natural gas in shaping future alliances. #Israel Secures Major Gas Export Deal with Egypt Worth $35 Billion#
