Egypt has made a landmark move in its energy sector by signing a $35 billion agreement with the consortium managing Israel’s Leviathan gas field off Haifa’s coast.
Announced by NewMed Energy, the contract secures gas deliveries to Egypt until 2040 or until the allocated volumes are fully supplied.
The deal unfolds in two phases, with the first shipments set to begin in 2026.
These will flow through existing infrastructure currently undergoing expansion to accommodate the increased volume.
Egypt is slated to receive a total of 130 billion cubic meters of natural gas, a substantial supply aimed at shoring up its electricity grid, which has been under strain due to rising demand and fuel supply challenges.
For Israel, this agreement marks its largest-ever gas export contract, underscoring the Leviathan field’s growing importance on the global energy map.
Meanwhile, Egypt’s ambition to serve as a regional gas hub is reinforced, positioning the country as a key player in redistributing energy supplies across the Mediterranean and to European markets.
“This partnership is not just about energy; it signals a significant economic rapprochement between two nations long marked by mistrust,” the report notes.
The agreement reflects a pragmatic shift driven by urgent energy needs and emerging economic opportunities, highlighting the evolving dynamics of regional cooperation.
As Egypt and Israel deepen their energy ties, this deal could pave the way for further collaborations in the Mediterranean, reinforcing Egypt’s role in the global energy landscape and advancing stability through shared economic interests.
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