$35B gas deal underscores Egypt’s energy reliance on Israel despite Gaza tensions
Israel and Egypt have finalized a $35 billion gas deal that will double Israeli gas exports by 2029, highlighting Cairo’s growing energy dependence on its neighbor, even as political tensions rise over Gaza.
Israel’s Leviathan gas field has signed a record export deal with Egypt that is worth up to $35 billion, partner NewMed Energy said Thursday. The agreement, described by NewMed as the largest in Israeli history, will deepen energy ties between the two countries as Egypt faces mounting power shortages.
What happened: The agreement will see the delivery of up to 130 billion cubic meters (bcm) of natural gas from the Leviathan field through 2040. Leviathan, Israel’s largest offshore gas reserve located in the Mediterranean, is estimated to hold around 600 bcm of gas.
The gas will be supplied via undersea pipelines, providing a more cost-effective alternative to liquefied natural gas (LNG), which requires expensive cooling and shipping.
Chevron, a US-based energy company, holds a 39.66% stake in the Leviathan project, while Israel’s NewMed Energy owns 45.34%, and the remaining 15% is held by Ratio Energies, also based in Israel.
