Israel has signed its largest-ever natural gas export agreement, a deal valued at approximately $35 billion (about 112 billion Israeli shekels) to supply Egypt with up to 130 billion cubic meters of gas from the Leviathan field through 2040.
The agreement, finalized this week after months of negotiations and delays, expands on previous exports and is expected to generate around 58 billion shekels in direct revenue for the Israeli government through royalties and taxes.
Prime Minister Benjamin Netanyahu hailed the deal as a milestone for Israel’s energy sector and regional ties. “This is the biggest export deal in Israel’s history,” Netanyahu said in a statement, emphasizing its role in strengthening economic interdependence with Egypt despite ongoing regional tensions.
The pact involves partners in the offshore Leviathan reservoir, including U.S. energy giant Chevron, NewMed Energy and Ratio Energies. It includes phased increases in supply, starting with additional volumes in 2026 and ramping up further after infrastructure expansions, such as a new pipeline.
Energy Minister Eli Cohen, who had previously delayed approval over concerns about domestic reserves and security issues, gave the green light following diplomatic efforts, including U.S. involvement.
The deal underscores Israel’s emergence as a key natural gas exporter in the Eastern Mediterranean, with exports to Egypt and Jordan already accounting for half of production in recent years. State revenues from gas royalties reached a record in 2024, and this agreement is projected to significantly boost future inflows.
Egypt, facing domestic energy shortages, will use the gas for power generation and potential re-export as liquefied natural gas.
The signing comes amid strained Israel-Egypt relations over Gaza border issues but highlights continued cooperation in energy and security.
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