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Israel’s Ministry of Energy announced on Tuesday that negotiations over a natural gas supply agreement with Egypt have reached “advanced stages,” though several issues still need to be resolved, Israeli outlets reported.
The statement comes as other sources confirmed that Israel is engaged in marathon talks to finalize the deal within 24 hours.
In August, Israel signed its largest-ever export agreement, under which it would supply Egypt with up to $35 billion worth of natural gas from the Leviathan field.
Israeli Energy Minister Eli Cohen said he is delaying approval of the gas deal to secure better commercial terms for the Israeli market. A spokesperson for Cohen said on Tuesday that negotiations are still ongoing.
The English-language Israeli outlet Globes reported that Prime Minister Benjamin Netanyahu is expected to sign the final agreement within 24 hours, following intensive negotiations between Israel’s Ministry of Energy and the partners operating the Leviathan field.
According to the report, the talks have focused on securing priority for the domestic market in the event of supply disruptions, as well as ensuring a preferential price.
The outlet noted that Netanyahu pushed for the agreement to be finalized before he met with U.S. President Donald Trump on Dec. 29, in an effort to secure the administration’s support for the American company Chevron.
Once the Israeli government gives its final approval, the Leviathan partners are expected to make an investment decision to expand the field’s infrastructure, a process that would take, at most, two weeks. This would allow all export approvals for Egypt to be completed before Netanyahu arrived in Washington.
The report added that, amid delays in the Israeli government’s approval of the deal, Egypt has begun exploring alternatives, including purchasing liquefied natural gas from Qatar and the United States.
The Israeli decision was expected within two months of signing the deal, but the final export permit was delayed. One of the main reasons for the holdup, according to the report, is new demands from the Ministry of Energy.
The ministry requested that the Israeli partners extend the export period beyond 2040, the deadline set in the original contract, in exchange for supplying gas to the domestic market at a price lower than that of the previous export agreement, which expired four years ago.
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