Israeli Prime Minister Benjamin Netanyahu has formally approved a historic natural gas export agreement with Egypt, marking the largest energy deal in Israel’s history. The monumental arrangement, valued at 112 billion shekels ($34.67 billion), will facilitate substantial gas shipments from Israel’s Leviathan offshore field to address Egypt’s growing energy requirements.
The agreement, finalized in August but delayed due to unresolved negotiation points, involves American energy giant Chevron Corporation alongside Israeli partners. Netanyahu emphasized the strategic importance of this partnership during a televised address, highlighting its potential to bolster regional stability through strengthened economic cooperation.
Egypt’s energy landscape has undergone significant transformation since 2022, when declining domestic production forced the nation to abandon its aspirations as a regional energy hub. The country has increasingly relied on imported liquefied natural gas, spending billions to meet domestic demand. This agreement represents a strategic pivot toward Israeli resources to compensate for production shortfalls.
The Leviathan field, located in the Mediterranean Sea, has emerged as a crucial energy asset for Israel since its discovery. This export arrangement not only solidifies Israel’s position as an emerging energy exporter but also creates an unprecedented economic partnership between the two nations despite their complex historical relations.
Energy analysts suggest this agreement could reshape Eastern Mediterranean energy dynamics while providing Egypt with a stable, cost-effective alternative to more expensive spot market purchases. The deal is expected to undergo gradual implementation with careful monitoring of export volumes and pricing mechanisms.