Israel has resumed its $35 billion natural gas agreement with Egypt after a months-long freeze caused by political tensions, security concerns, and pricing disputes.
The deal, initially signed in August 2025, will see Israel export about 130 billion cubic meters of gas from the Leviathan field to Egypt over the next 15 years, with partners including Chevron, NewMed Energy, and Ratio Petroleum Energy ensuring a set price for the Israeli domestic market, Business Insider Africa reported.
The agreement was hailed as a landmark for regional energy cooperation, supporting Egypt’s LNG export ambitions while meeting rising domestic demand amid persistent electricity shortages.
Phase one is expected to produce roughly 20 billion cubic meters by 2026, with gradual increases in subsequent years.
Infrastructure upgrades, including a new cross-border pipeline through Nitzana and capacity enhancements at Leviathan, are planned to facilitate deliveries.
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Progress stalled in November 2025 when Israel’s Energy Minister Eli Cohen said, “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.”
Delays were driven by broader political tensions, including Egypt’s opposition to Palestinian displacement, alongside unresolved security and pricing conditions.
Cohen stressed that the agreement “safeguards the shekel, strengthens the economy, and promotes regional stability, all while navigating sensitive regional dynamics.”
The United States also applied strategic diplomatic pressure, including ahead of a planned visit by U.S. Energy Secretary Chris Wright, emphasizing the deal’s importance for regional energy security.
For Egypt, the agreement is critical as imports from Israel rose to a record 981 million cubic feet per day in 2025, covering nearly 20% of national needs, amid declining domestic production and reduced output from the Zohr field.
Following renewed negotiations, both countries have committed to completing infrastructure upgrades, enabling Israel to maintain its role as a major energy exporter while helping Egypt stabilize supply and expand its LNG export potential.
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Image Credit: Middle East Eye
