Israel Approves $35 Billion Deal to Export Natural Gas to Egypt

Israel gave the green light to a deal worth 112 billion shekels ($35 billion) to supply natural gas to Egypt from 2026 to 2040, overcoming some pushback on the agreement’s terms.

Prime Minister Benjamin Netanyahu said in a televised statement Wednesday that he had approved the agreement after his country’s national interests were secured, labeling it “the largest gas deal in Israel’s history.”

The accord would see 130 billion cubic meters of gas sent to Egypt, according to terms outlined in August.

“This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region,” Netanyahu said. “It encourages other companies to invest in gas exploration in Israel’s economic waters.”

The agreement will see Egypt boost its contracted purchases of gas from Israel’s offshore Leviathan field, operated by US energy giant Chevron Corp.

Energy Minister Eli Cohen had earlier refused to sign the export license, demanding better pricing for Israel while citing “intense” pressure from the US to seal the pact. He later said that “perception gaps have greatly reduced,” indicating the deal was being finalized.

“The state’s revenues from taxes and royalties thanks to the deal will stand at approximately NIS 58 billion, and the scope of direct infrastructure investments in the economy will exceed NIS 16 billion,” Cohen said on Wednesday.

Egypt has bought large volumes of liquefied natural gas since becoming a net gas importer in 2024 due to surging domestic demand and declining output from its own fields. The supply deal with Israel might mean the North African nation can import less LNG in the future.