Israel is preparing to approve a landmark $35 billion natural gas export agreement that will supply Egypt with gas from the offshore Leviathan field. The deal will deliver about 130 billion cubic meters of natural gas by 2040, making it the largest export arrangement in Israel’s history. It builds on an earlier contract that has already supplied Egypt since 2020, expanding the scale and duration of cooperation between both countries.
The first phase of the agreement is expected to begin in 2026 once pipeline upgrades and new transmission infrastructure are completed. This phase will deliver 20 billion cubic meters of gas. A second phase will follow with an additional 110 billion cubic meters once the full expansion is in place.
For Egypt, the deal comes at a crucial time. Domestic gas production has declined sharply, while local demand continues to grow. Accessing gas through regional pipelines offers a more affordable and reliable option than importing liquefied natural gas from global markets. This supply stability could help ease energy shortages, reduce blackout risks, and strengthen the country’s economic outlook.
The first phase of the agreement is expected to begin in 2026 once pipeline upgrades and new transmission infrastructure are completed. This phase will deliver 20 billion cubic meters of gas. A second phase will follow with an additional 110 billion cubic meters once the full expansion is in place.
For Egypt, the deal comes at a crucial time. Domestic gas production has declined sharply, while local demand continues to grow. Accessing gas through regional pipelines offers a more affordable and reliable option than importing liquefied natural gas from global markets. This supply stability could help ease energy shortages, reduce blackout risks, and strengthen the country’s economic outlook.
For Israel, the agreement solidifies Leviathan’s role as a major regional energy source. The revenue from this long-term contract is expected to support ongoing development of the field and secure Israel’s domestic supply for the future.
Beyond commercial benefits, the deal reflects a broader shift toward deeper regional energy cooperation in the Eastern Mediterranean. It shows how long-term infrastructure and energy agreements are shaping new economic and strategic ties, even among nations with historically complex relationships.
Beyond commercial benefits, the deal reflects a broader shift toward deeper regional energy cooperation in the Eastern Mediterranean. It shows how long-term infrastructure and energy agreements are shaping new economic and strategic ties, even among nations with historically complex relationships.
