Israel has paused its biggest-ever gas export deal with Egypt, saying it will not move forward until certain conditions are met.
Energy and Infrastructure Minister Eli Cohen said the agreement would remain on hold until Israel’s security and economic interests are fully protected.
“As a member of the cabinet, I will not approve the deal before ensuring that Israel’s security interests are protected and that a fair and competitive price is guaranteed for Israeli citizens,” Cohen said in an interview with a local TV station, as reported by Egypt Independent.
See Also:
Egypt Plans New Trade Policy To Tackle Import Costs And Prepare For Regional Agreements
He declined to provide more details but stressed that the deal is not just about money, saying it also carries “political and security connotations.”
He added that while the agreement could help strengthen the shekel, boost the economy, and promote stability, it must be handled carefully due to its wider implications.
Despite U.S. pressure to finalize the deal quickly, Cohen said his position would not be influenced by outside forces.
The United States had reportedly pushed for the $35 billion deal to be completed before U.S. Energy Secretary Chris Wright’s planned visit to Israel.
After Israel refused, Wright canceled his six-day trip. The gas deal, signed in August between Israel’s Leviathan partners, led by NewMed Energy and the U.S. company Chevron, and Egypt, involves selling around 130 billion cubic meters of gas from Israel’s Leviathan field until 2040.
The field, located off Israel’s Mediterranean coast, holds an estimated 600 billion cubic meters of reserves.
The agreement is designed to strengthen Israel’s role as a major energy exporter and support Egypt’s plan to become a regional energy hub.
It will also help Egypt expand its LNG exports Shell Approves $2 Billion Offshore Gas Project In Nigeria To Strengthen LNG Exports and meet growing domestic demand amid ongoing power shortages.
To support the deal, both countries planned to improve infrastructure, including a new cross-border pipeline through Nitzana and upgrades to Leviathan’s capacity.
Exports from the field were briefly halted during the 12-day war between Iran and Israel in June but later resumed, according to Reuters.
See Also:
Saudi Arabia Yet To Decide On Investing In Egypt’s Red Sea Coast, Says Minister
Image Credit: Haaretz
