Israel has officially approved its largest export agreement to date, clearing the way for a long-term natural gas supply deal with Egypt that is expected to strengthen energy flows into Africa and global markets.
The agreement is anchored on gas production from Israel’s Leviathan offshore field and will see Egypt receive about 130 billion cubic metres of natural gas over a 15-year period. Valued at up to $35 billion, the deal ranks among the biggest cross-border energy transactions ever recorded in the Eastern Mediterranean region.
Prime Minister Benjamin Netanyahu confirmed the approval this week, stating that the project involves U.S. energy company Chevron alongside Israeli partners. Gas from the Leviathan field will be transported to Egypt, reinforcing energy cooperation between the two countries despite recent political and security challenges in the region.
The deal had faced delays in recent weeks after Israeli authorities raised concerns over pricing terms and the need to protect domestic gas supply. In November, Energy and Infrastructure Minister Eli Cohen said Israel would not move forward unless the agreement guaranteed supply security and stable pricing for the local market.
Those concerns have now been resolved. The Leviathan partners — Chevron, NewMed Energy and Ratio Petroleum Energy — agreed to conditions ensuring that exports to Egypt will not disrupt Israel’s domestic gas availability or pricing balance.
Originally signed in August, the agreement is expected to run until 2040 or until the full contracted volumes are delivered. The Leviathan gas field, located off Israel’s Mediterranean coast, holds nearly 600 billion cubic metres of natural gas reserves, making it one of the region’s most strategic energy assets.
For Egypt, the deal is expected to help meet rising domestic energy demand while boosting liquefied natural gas (LNG) exports, particularly to African and international markets. The additional supply comes at a critical time as Egypt continues to grapple with power shortages and growing consumption.
Both countries also plan to upgrade infrastructure to support the expanded gas flow, including increasing production capacity at Leviathan and developing a new cross-border pipeline through the Nitzana area. Initial expansion is expected to deliver around 20 billion cubic metres annually by 2026, with further growth planned through 2040.
