Historic Gas Deal Between Israel and Egypt Sparks Regional Energy Stability

Israel has approved a major deal to export up to $35 billion of natural gas to Egypt, marking the largest gas agreement in Israel's history. The deal, involving Chevron and its partners, aims to address energy deficiencies in Egypt and bolster regional stability. It's expected to export around 130 bcm of gas through 2040.

Israel has greenlit a monumental agreement to supply natural gas to Egypt, described as the largest in the nation's history by Prime Minister Benjamin Netanyahu. This landmark deal, sealed in August with Chevron and its partners NewMed and Ratio, commits to exporting up to $35 billion worth of gas from Israel's Leviathan natural gas field to Egypt.

During a televised statement, Netanyahu noted that the deal amounts to 112 billion shekels ($34.67 billion) and emphasizes its potential to enhance stability across the region. The agreement is poised to alleviate Egypt's energy crisis, which has seen the country spend billions on liquefied natural gas imports due to falling domestic production.

Chevron has expressed support following Israel's decision to permit the gas exports, a move that accelerates expanding the Leviathan gas field on Israel's Mediterranean coast. With reserves of around 600 billion cubic meters, Leviathan will supply approximately 130 bcm of gas to Egypt until 2040, aiming to meet contractual terms of the deal, according to NewMed.

(With inputs from agencies.)