Wedoany.com Report-Aug. 8, Israeli Minister of Energy Eli Cohen announced the signing of a $35 billion natural gas export agreement with Egypt. This deal, described as the largest in Israel’s history, involves the sale of approximately 130 billion cubic meters of natural gas and will remain in effect until 2040 or until the full contracted volume is supplied.

A view of the platform of the Leviathan natural gas field in the Mediterranean Sea is pictured from the Israeli northern coastal beach of Nasholim, on August 29, 2022.

The agreement was signed by NewMed Energy, one of the companies involved in developing the Leviathan gas field, located offshore. It represents a significant expansion of previous energy trade arrangements between the two countries and follows an earlier export agreement from 2019, which covered 60 billion cubic meters. With the new deal, Israel’s total natural gas exports to Egypt are set to triple.

According to Cohen, the agreement is expected to bring substantial economic benefits. He stated: “Signing the largest gas deal in history is an important development in terms of security, politics, and the economy.” He added that the deal strengthens Israel’s role as a key regional energy provider and contributes to the country’s economic growth by generating billions in revenue and creating new employment opportunities.

The natural gas will be supplied from the Leviathan field, which is one of the largest gas discoveries in the Eastern Mediterranean. The gas will be transported to Egypt, where it can be used domestically or liquefied for re-export to global markets. The infrastructure required to support this trade includes existing pipelines and facilities designed for natural gas processing and export.

The expansion of natural gas exports between Israel and Egypt reflects the growing energy cooperation in the Eastern Mediterranean. The deal also supports broader energy security goals in the region, providing Egypt with a stable source of supply to meet domestic demand and enhance its role as an energy hub.

NewMed Energy, the partner in the export arrangement, confirmed that deliveries under the new agreement will align with existing infrastructure capabilities and will be integrated into current export operations. The company emphasized that the agreement reflects long-term confidence in the region’s energy development potential.

Israeli public broadcasting reported that the new deal significantly increases the scale of exports and aligns with the country’s broader strategy to utilize its natural gas reserves to support economic and regional cooperation initiatives.

The agreement is set to be implemented gradually, with deliveries based on existing capacities and long-term planning between the involved parties. It underscores the increasing importance of natural gas as a component of regional energy strategies and highlights the role of cross-border agreements in advancing mutual economic interests.