Netanyahu confirms Israel’s largest-ever natural gas deal with Egypt

Israel has approved its largest-ever natural gas deal, Prime Minister Benjamin Netanyahu announced on Wednesday, confirming an agreement to supply Egypt.

The deal is valued at an estimated $34.67 billion. The export agreement, signed in August with Chevron and its partners NewMed and Ratio, will see gas flow from the Leviathan natural gas field.

"I have today approved the largest gas deal in Israel's history. The deal is for 112 billion shekels ($34.67 billion)," Mr Netanyahu said in a televised statement.

Netanyahu added that the deal "greatly strengthens Israel’s position as a regional energy power, and it contributes to stability in our region.”

It is also expected to ease an energy crisis in Egypt, which has spent billions importing liquefied natural gas since its own supplies fell short of demand.

A Chevron spokesperson welcomed Israel's decision to issue a permit for the export of natural gas from the Leviathan reservoir to Egypt.

Chevron had said in November it was nearing a final investment decision for expanding the Leviathan gas field off Israel's Mediterranean coast, but was awaiting an Israeli permit to export the gas to Egypt.

Israel discovered sizeable natural gas fields off its Mediterranean coast in the early 2000s and began exporting gas — first to Jordan and later to Egypt — nearly a decade ago.

Under the deal, Leviathan, which has reserves of some 600 billion cubic metres, will sell about 130 bcm of gas to Egypt through 2040 or until all contract values are fulfilled, said NewMed in a statement.

Egypt's production began declining in 2022, forcing it to abandon its ambitions to become a regional supply hub. It has increasingly turned to Israel to make up the shortfall.

Egypt, which borders both Israel and Gaza, has served as a key mediator between Israel and the Palestinian militant Hamas group leading up to the US-brokered ceasefire that was agreed on in October.

Cairo has also has been a vocal critic of Israel’s offensive, which has killed tens of thousands of Palestinians and caused widespread destruction in Gaza.