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Israeli Prime Minister Benjamin Netanyahu announced Wednesday the approval of a landmark natural gas agreement that will supply Egypt with fuel from offshore Israeli fields, describing the transaction as the largest export deal in the nation's history.
The deal, valued at 112 billion shekels ($34.7 billion), will see American energy giant Chevron and its Israeli partners deliver natural gas to Egypt from the Leviathan field located in the Mediterranean Sea. Netanyahu stated that 58 billion shekels ($18 billion) of the total value would flow into Israeli state coffers.
"I have today approved the largest gas deal in Israel's history," Netanyahu said during a televised statement Wednesday. He added that the agreement, which had faced delays over unresolved issues, would help secure regional stability.
The arrangement, originally signed in August, comes as Egypt grapples with a deepening energy crisis that has forced the country to spend billions importing liquefied natural gas after domestic production fell short of demand.
Egypt's natural gas output has declined sharply in recent years, dropping from approximately 7 billion cubic feet per day in 2022 to around 4.5 billion cubic feet daily at present. The production collapse forced Cairo to abandon its ambitions of becoming a regional energy hub and increasingly rely on imports to meet domestic consumption needs.
The country has turned to Israel to help bridge the supply gap as its own aging fields mature and new exploration efforts fail to yield significant discoveries. Energy Minister Eli Cohen, who appeared alongside Netanyahu during the announcement, characterized the agreement as "the largest export deal in the state's history."
The deal is part of a broader strategic pivot by international energy companies toward Egypt's Mediterranean offshore prospects after disappointing results elsewhere. Major producers including Chevron and Shell recently exited exploration concessions in the Red Sea, where drilling campaigns launched in 2019 failed to produce commercial discoveries.
Both companies have since applied for new concessions in the Mediterranean, where existing infrastructure and proven reserves offer more attractive commercial opportunities. The Leviathan field, which will supply the gas under the newly approved agreement, ranks among the Eastern Mediterranean's most significant natural gas deposits.
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