Prime Minister Benjamin Netanyahu announced Wednesday evening that he had approved a natural gas deal with Egypt worth 112 billion shekels ($35 billion). He said that, over the coming years, 58 billion shekels ($18 billion) of the expected revenues will go into the state’s coffers, making it the largest sale of Israeli gas to date.

American energy giant Chevron, together with a group of Israeli companies, signed the deal last August to sell natural gas from the undersea Leviathan field to Egypt’s Blue Ocean. Under the agreement, Egypt is expected to purchase 130 billion cubic meters (BCM) of gas in two phases, depending on the progress of expanding the pipeline that will transport the gas. 

A deal signed in 2019 saw Egypt purchase 60 BCM of natural gas from Israel. The current agreement, negotiated over two years, was initially blocked by Energy Minister Eli Cohen, who argued that Israel’s interests were not adequately protected. Cohen demanded that, in addition to the gas sold to Egypt, the companies commit to supplying gas to Israeli consumers at low prices. US Energy Secretary Chris Wright canceled his scheduled visit to Israel at the end of August over Cohen’s refusal to approve the deal.

In a recorded video address to Israelis on Wednesday, Netanyahu said the deal will involve significant infrastructure investment by the companies, including expanding the pipeline that will transport the liquefied gas to Egypt. He added that the revenues the state receives each year will be invested in education, infrastructure and security.