Egypt has signed a landmark $35 billion agreement to import natural gas from Israel’s Leviathan gas field, marking the largest export deal in Israeli history and strengthening regional energy cooperation despite ongoing Middle East tensions.
The agreement, announced Thursday by NewMed Energy, will see Israel supply Egypt with approximately 130 billion cubic meters of natural gas through 2040. The deal represents Egypt’s most significant long-term energy supply agreement as the Arab world’s most populous nation seeks to meet growing domestic energy demands.
Under terms signed between NewMed, its partners, and Blue Ocean Energy, deliveries will commence in early 2026. Yossi Abu, NewMed Energy’s chief executive, called it “the most strategically important export deal to ever occur in the Eastern Mediterranean,” strengthening Egypt’s position as the region’s most significant energy hub.
The timing is notable given recent disruptions during a 12-day Israel-Iran conflict in June, when Leviathan operations were temporarily halted. Before those interruptions, Egypt imported approximately one billion cubic feet of gas daily from Israel, accounting for about 13 percent of Egypt’s total daily consumption of around 7.5 billion cubic feet.
The deal addresses Egypt’s mounting pressure to secure reliable energy supplies supporting economic recovery. The International Monetary Fund upgraded Egypt’s growth forecast for 2024-2025 to 3.8 percent, while the Central Bank projects 4.3 percent expansion, recovering from 2.4 percent in 2023-2024.
The Leviathan gas field, located off Israel’s Mediterranean coast with reserves of approximately 600 billion cubic meters, has become central to Israeli energy exports. The field currently supplies Egypt with about 4.5 billion cubic meters annually under existing contracts.
This expanded partnership deepens the energy relationship between the two countries, which began with gas imports in 2018. The agreement underscores evolving Eastern Mediterranean energy cooperation, positioning both nations as key regional players despite broader political tensions.
