Post by : Meena
Hassan
Israel has secured its most significant natural gas export agreement to date, finalizing a monumental $35 billion contract with Chevron, NewMed, and Ratio to deliver gas from the Leviathan field to Egypt. Prime Minister Benjamin Netanyahu announced this historic pact during a televised address, calling it “the largest gas deal ever undertaken by Israel” and noting its potential to bolster regional stability.
As part of the agreement, Israel is expected to supply roughly 130 billion cubic meters of gas to Egypt through 2040, or until all contractual obligations are fulfilled. The Leviathan field, located off Israel's Mediterranean coastline, boasts estimated reserves totaling around 600 billion cubic meters, positioning it as a vital energy resource for both Israel and the surrounding regions.
This deal directly addresses Egypt's pressing energy deficits, which have arisen as domestic production has declined since 2022. In response, Cairo has invested billions in liquefied natural gas imports, intensifying its reliance on Israel as a dependable energy ally.
Chevron welcomed the necessary export permit approval from Israel, which it had been anticipating. The company indicated in November that it was close to making a final investment decision regarding the expansion of the Leviathan field, reliant on receiving export permissions.
Experts suggest that this agreement could stabilize energy pricing in Egypt while strengthening Israel’s position as a key energy supplier in the region. Netanyahu pointed out that previous regulatory and commercial hurdles had delayed the deal but expressed optimism about its potential to foster sustained regional energy security.
This historic agreement highlights the increasing energy collaboration between Israel and Egypt and reflects a wider trend of regional partnerships aimed at addressing energy supply challenges and ensuring stability across the Eastern Mediterranean.
English
