DayofPal—Israeli Prime Minister Benjamin Netanyahu on Wednesday approved a wide-ranging agreement to export natural gas to Egypt, describing it as the largest gas deal in Israel’s history.
The deal is valued at 112 billion shekels, approximately $35 billion, according to Israeli government statements, while no official comment has been issued by Egypt so far.
Speaking in a televised address alongside Energy Minister Eli Cohen, Netanyahu said the agreement was approved after “ensuring Israel’s vital and security interests,” without providing further details.
He stated that nearly half of the revenues from the deal would flow into Israel’s treasury and that the agreement obliges the companies involved to sell gas at “reasonable prices for the Israeli consumer,” while also supplying Egypt.
Netanyahu added that Israel continues to expand gas extraction from its territorial waters, claiming the sector has generated substantial profits for the Israeli economy.
Approval of the deal was delayed for months due to internal disagreements within the Israeli government, particularly over ensuring sufficient and affordable gas supplies for the domestic market before expanding exports.
According to announced details, the U.S. energy company Chevron operates the Leviathan gas field in the eastern Mediterranean, which began production in 2020 and already supplies gas to Egypt and Jordan.
In August, NewMed Energy, one of the field’s partners, revealed an agreement to supply Egypt with around 130 billion cubic meters of gas, valued at up to $35 billion.
Deliveries are expected to take place in two phases, linked to the expansion of the export pipeline. A previous agreement signed in 2019 provided for Egypt’s purchase of 60 billion cubic meters of Israeli gas.
Israeli media reported that the negotiations over the current deal lasted nearly two years and were accompanied by pressure from the United States to finalize the agreement with Cairo.
Netanyahu said that about 58 billion shekels, around $18 billion, in revenues are expected to enter Israel’s treasury in the coming years.
Politically, Hebrew media suggested that approval of the deal could pave the way for a possible trilateral meeting between Netanyahu, U.S. President Donald Trump, and Egyptian President Abdel Fattah El-Sisi, on the sidelines of Netanyahu’s anticipated visit to Washington later this month.
Analysts say the Israeli government is seeking to use the gas sector as a tool of strategic and political influence, including in its relations with Egypt and discussions over the future of Gaza.
Israeli affairs expert Ahmed Fouad Anwar warned that while Israel may aim for political gains, it risks straining strategic relations with Cairo, emphasizing that Egypt places its national security above economic considerations.
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