Egypt said on Thursday that its natural gas agreement with Israel is a “strictly commercial” deal with no political implications.
Officials emphasized that it was signed by private energy companies under market rules and without direct government involvement.
The statement follows Israel’s approval on Wednesday of an export agreement signed in August with Chevron and its partners, NewMed and Ratio, to supply up to $35 billion worth of natural gas to Egypt from the Leviathan gas field, reported by Reuters.
The deal comes amid heightened regional tensions following the October 7, 2023, deadly attack on Israel by the Palestinian group Hamas and Israel’s subsequent war in Gaza, which has killed tens of thousands of people.
Egypt reiterated that its stance on the Palestinian issue remains unchanged.
Diaa Rashwan, head of Egypt’s State Information Service, said the country’s position is “firm and unwavering,” supporting the legitimate rights of the Palestinian people, rejecting forced displacement, and adhering to a two-state solution.
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On Wednesday, Israeli Prime Minister Benjamin Netanyahu called the agreement the largest gas deal in Israel’s history, adding that it would help strengthen regional stability.
Under the terms of the agreement, the Leviathan field, which holds around 600 billion cubic metres of gas reserves, will supply about 130 billion cubic metres of gas to Egypt through 2040 or until the full contract value is fulfilled, according to NewMed.
Egypt’s gas production has been declining since 2022, forcing the country to abandon its ambitions to become a regional gas hub.
As a result, it has increasingly relied on Israeli gas to make up the shortfall.
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