Netanyahu hailed the agreement as “the largest gas deal in Israel’s history” in a televised address, adding that the deal is worth $34.6 billion.
“This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region. It encourages other companies to invest in gas exploration in Israel’s economic waters,” said Netanyahu.
According to a report by CNN, Israel initially avoided signing the deal for a couple of months but ultimately caved under Washington's pressure.
What is the deal?
Netanyahu said the money would "strengthen education, healthcare, infrastructure, security, and the future of the next generations", as well as bolster "Israel's status as a regional energy power".
Israeli firm NewMed Energy announced in August the signing of a $35 billion deal to provide Egypt with natural gas.
The deal would increase the total volume of gas supplied to Egypt to 130 billion cubic metres, according to a report published by the firm.
In a statement issued late on Wednesday, NewMed CEO Yossi Abu said it was "a historic day for the natural gas sector, one that guarantees continued investment in Israel and creates regulatory stability for years to come".
Israel-Egypt summit soon?
US President Donald Trump has been pushing for a summit between the Israeli and Egyptian leadership under his ambitious plans to pursue regional peace in West Asia and an expansion of the Abraham Accords.
The two countries signed a landmark peace agreement in 1979; however, the leaders of Israel and Egypt have not met publicly in almost a decade.
An Israeli source told CNN that the announcement of the recent gas deal is part of Netanyahu's plan to lay the groundwork for a possible summit.
Netanyahu is expected to travel to the United States later this month for a meeting with Trump at Mar-a-Lago.
He had briefly planned to attend a peace summit in Sharm el-Sheikh, Egypt, in October alongside Trump, but abruptly withdrew. While Egypt has been central to mediation efforts during the Gaza war, relations between Netanyahu and President Abdel Fattah el-Sisi have long been strained.
With inputs from agencies
