Newsletters
Israeli Energy Minister Eli Cohen said on Thursday that Israel and Egypt are nearing the conclusion of a new long-term natural gas export deal valued at $35 billion, which he expects will be signed "within weeks."
The deal would significantly expand exports from Israel’s offshore Leviathan field, building on a 2019 agreement to deliver 60 billion cubic meters (bcm) of gas.
The new arrangement, announced by Israeli firm NewMed Energy in August, increases the volume to 130 bcm through 2040, making it the largest export package in Israel’s history. Gas is expected to be shipped via existing pipelines to Egypt, where it can be used for domestic consumption or liquefied and re-exported to global markets.
The agreement has faced several months of delay, with earlier reports suggesting that Prime Minister Benjamin Netanyahu had withheld final approval. However, Israel’s public broadcaster KAN, citing anonymous sources, reported this week that Netanyahu has now authorized the deal to proceed. KAN journalist Michael Shemesh said the agreement may be signed as early as this week.
Cohen described the deal as "historic" in an interview with Yedioth Ahronoth, arguing that it would help lower electricity costs for Israeli consumers while reinforcing Israel’s regional and international stature. He also noted that the deal has not been blocked by the government and that negotiations between both governments and energy companies have narrowed key differences.
While the Egyptian government has not officially commented, Cohen stated that Egyptian authorities had requested several unspecified "security clarifications," which he said are now nearly resolved. The negotiations were reportedly mediated by U.S. actors during the final phase.
Media reports earlier suggested that delays stemmed from Israeli concerns over Egypt’s adherence to the security annex of the 1979 peace treaty. In September, Israel Hayom reported that Netanyahu instructed officials not to move forward without his direct approval, citing Cairo’s alleged violations—claims Egypt has denied.
The announcement comes amid reports of Egypt considering alternative gas supplies from Qatar to cover demand, raising the stakes for Israel to finalize the deal.
1 min read
1 min read
