JERUSALEM (ATP) – Israel is set to approve the largest gas supply deal in its history, a $35 billion agreement to export natural gas to Egypt. The landmark deal, signed by NewMed Energy and its partners, will see Israel supply Egypt with 130 billion cubic meters (bcm) of natural gas from its offshore Leviathan field through 2040. ?
According to reports, The agreement is an expansion of an existing 2018 gas deal between the two nations. It’s considered the most significant export deal in Israel’s history, nearly tripling the amount of gas currently supplied to Egypt. The new deal is expected to be carried out in two phases, with the initial phase of gas flow starting in early 2026. The second phase, which will supply the bulk of the gas, is contingent on the completion of the Leviathan expansion project and the construction of new pipelines.
For Israel, the deal solidifies its position as a major energy player in the Eastern Mediterranean. It provides a massive long-term revenue stream and strengthens its economic ties with Egypt. For Egypt, the agreement is crucial for meeting its growing domestic energy needs and addressing recent power shortages. ?? The influx of Israeli gas is also a key part of Egypt’s strategy to become a regional energy hub, utilizing its liquefaction plants to re-export gas to Europe and other markets.
Despite political tensions, this deal highlights the deepening economic and energy cooperation between the two countries. ATP
