What's Happening?
Israel has officially approved a significant natural gas export agreement with Egypt, involving the Leviathan offshore gas field. The deal, valued at approximately $35 billion, was signed in August 2025
and allows Israel to supply Egypt with 130 billion cubic meters of natural gas over 15 years. This agreement marks one of the largest energy transactions in the Eastern Mediterranean. The deal had been delayed due to concerns over pricing stability and supply security, but recent negotiations have resolved these issues. The agreement involves key industry partners such as Chevron Corp., NewMed Energy, and Ratio Petroleum Energy, who have committed to ensuring that the gas shipments to Egypt do not compromise Israel's energy needs.
Why It's Important?
This agreement is significant as it strengthens energy cooperation between Israel and Egypt, two major regional players. It also highlights Israel's growing role as a key energy exporter in the Eastern Mediterranean. The deal is expected to boost Egypt's LNG exports and help meet its domestic energy demands, which have been challenged by persistent power outages. For Israel, this agreement not only secures a substantial economic benefit but also enhances its geopolitical influence in the region. The successful negotiation of this deal demonstrates the potential for energy resources to foster regional cooperation despite existing political and security challenges.
What's Next?
Following the approval of the agreement, both Israel and Egypt are expected to focus on improving infrastructure to facilitate the gas exports. This includes the construction of a new cross-border pipeline through Nitzana and capacity increases at the Leviathan gas field. The successful implementation of this deal could pave the way for further energy collaborations in the region. Additionally, the agreement may influence other countries in the Eastern Mediterranean to explore similar partnerships, potentially reshaping the regional energy landscape.
