Israel is poised to finalize a significant natural gas supply agreement with Egypt, marking a pivotal moment for regional energy markets. This landmark accord, anticipated within the next two weeks after two years of negotiations, centers on the expansive Leviathan gas field, Israel’s largest. NewMed Energy, a key partner in the Leviathan project, has characterized this agreement as the “largest” in Israel’s history, projecting a potential tripling of the nation’s natural gas exports by 2028.
Under the terms, Egypt will procure 130 billion cubic meters of Israeli gas through 2040, a deal valued at approximately $35 billion. This substantially amends a 2019 agreement that had envisioned significantly lower volumes. The expanded framework enables Israel to considerably boost its natural gas production and diversify exports to lucrative Asian and European markets. Simultaneously, it guarantees Egypt a stable energy supply vital for its power sector and supports the strategic growth of its liquefied natural gas (LNG) industry, reinforcing its regional energy hub ambitions.
- A landmark natural gas supply agreement is nearing finalization between Israel and Egypt.
- The accord centers on Israel’s largest gas reservoir, the Leviathan field.
- Egypt is set to acquire 130 billion cubic meters of Israeli gas by 2040, valued at $35 billion.
- This deal is projected to triple Israel’s natural gas exports by 2028.
- It secures a stable energy supply for Egypt’s power sector and supports its LNG industry growth.
- The agreement enhances Israel’s ability to diversify exports to Asian and European markets.
Operationalizing the Supply Agreement
NewMed Energy has detailed a phased implementation for the gas supply. Initial deliveries of 20 billion cubic meters are scheduled for the first half of 2026 via Egyptian importers. An additional 110 billion cubic meters will follow upon the completion of Leviathan’s production infrastructure expansion. This crucial upgrade is projected to increase the field’s annual capacity from 21 billion cubic meters to 23 billion cubic meters, solidifying Leviathan’s standing as a cornerstone energy source in the Eastern Mediterranean.
The agreement also outlines Israel’s long-term energy distribution strategy. By 2035, roughly 60% of Leviathan’s gas output is earmarked for export, with the remaining 40% dedicated to domestic consumption, supporting new power generation. In 2024, Leviathan produced about 11 billion cubic meters, with half exported to Egypt and the remainder supplying Israel and Jordan. Moving forward, Leviathan is expected to be Israel’s dominant gas source from the 2040s, meeting the bulk of national demand throughout its operational life.
Nathan hunts down the latest corporate deals faster than you can brew your morning coffee. He’s famous for scoring exclusive CEO soundbites—often by offering his legendary homemade brownies in exchange. Outside the newsroom, Nathan solves mystery puzzles, proving he can crack even the toughest business cases.