Chevron has signed a landmark agreement with Israel Natural Gas Lines to construct the Nitzana pipeline, a $610 million project that will carry natural gas from Israel’s Leviathan field into Egypt.
The pipeline, expected to be completed in three years, will deliver about 600 million cubic feet of gas per day, boosting Israel’s total export capacity to Egypt to more than 2.2 billion cubic feet daily. The move is seen as a lifeline for Egypt, which has struggled with declining production from aging fields, rising domestic demand, and an increased reliance on imported liquefied natural gas (LNG).
The Leviathan field, discovered in 2010 off the coast of Haifa, holds nearly 23 trillion cubic feet of recoverable gas reserves, making it the largest natural gas asset in the Mediterranean. Operated by NewMed Energy with partners Chevron and Ratio Energies, the project has already reshaped regional energy flows by supplying gas to Israel, Jordan, and Egypt.
For Egypt, the pipeline offers relief at a time when its domestic production has fallen sharply, turning the country into a net gas importer since 2022. Imports from Israel already account for nearly 20% of its supply, with volumes rising nearly 20% year-on-year in 2024.
The deal also positions Chevron at the center of the East Mediterranean’s shifting energy landscape. Beyond the new pipeline, the U.S. major is preparing a final investment decision on the Leviathan Phase 1B expansion, which could include new wells, subsea infrastructure, and a floating LNG facility. A decision is expected by the end of 2025.
At the same time, Chevron has teamed up with Greece’s HelleniQ Energy to bid for offshore exploration blocks south of Crete, a region claimed by both Greece and Turkey under a longstanding maritime dispute.
Regional politics remain a major factor. Israeli Prime Minister Benjamin Netanyahu recently extended Israel’s $35 billion gas supply agreement with Egypt until 2040 but stressed that no new contracts should advance without his approval. Heightened tensions in Gaza and unresolved territorial disputes could complicate future flows.
Despite the challenges, the Nitzana pipeline underscores Israel’s ambition to become a key regional energy hub, with Chevron playing a pivotal role in connecting supply to one of the region’s fastest-growing energy markets.
