Israel has signed the largest export deal in its history, a $35 billion natural gas agreement with Egypt that will significantly boost energy cooperation between the two countries.

The deal was signed by Chevron and its partners in the Leviathan gas field, located offshore Israel, and involves the supply of about 4.59 trillion cubic feet (Tcf) of gas to Egypt between 2026 and 2040. The buyer is Blue Ocean Energy, a company that already receives gas from Leviathan under an earlier contract.

With this new deal, annual gas exports from Leviathan to Egypt will rise to 420 billion cubic feet (Bcf), nearly tripling the current supply of 160 Bcf. The increase will be made possible through a major expansion of the gas field, which includes new pipelines and additional drilling to boost production.

The first phase of the new agreement will start in 2026, after a third pipeline is installed to raise output to over 500 Bcf per year. A second phase, set to follow after further upgrades, will lift production capacity to around 740 Bcf annually.

Israel’s NewMed Energy, one of the main partners in the project, described the agreement as the most strategically important export deal ever made in the Eastern Mediterranean. The company’s CEO, Yossi Abu, said the deal strengthens Egypt’s role as a regional gas hub and showcases the potential of natural gas to promote cooperation between neighboring countries.

The Leviathan field, discovered in 2010, is one of the largest gas reserves in the region and has been a key part of Israel’s growing role in the international energy market since it began production in 2020.

With this record-breaking deal, both Israel and Egypt are set to benefit economically while deepening their energy ties.