Israel's Leviathan signs $35 billion gas export deal with Egypt

Israel has signed its largest-ever natural gas export agreement, paving the way for a significant increase in energy cooperation with Egypt.

Under the $35 billion deal, 130 billion cubic metres (BCM) of gas will be supplied to Egypt from the Leviathan field—representing around 22% of the field’s reserves and 13% of Israel’s total gas resources, Caliber.Az reports, citing foreign media.

The agreement, announced by the Leviathan consortium, triples the volume of gas previously earmarked for Egypt under a 2019 contract and marks a major step toward scaling up production from Israel’s largest offshore gas reservoir.

NewMed Energy, one of the key partners in the Leviathan project, described the deal as a milestone. “This is a historic day,” said Yossi Abu, CEO of NewMed. “Leviathan, the biggest natural gas field in the Mediterranean, is a strategic asset reshaping the region.”

Deliveries are set to begin in 2026, with 20 BCM supplied initially via Blue Ocean Energy. A further 110 BCM will follow after production capacity is expanded. Although final approval from Israel’s Petroleum Commissioner is pending, the Ministry of Energy and Infrastructure has already granted preliminary clearance for exports of up to 145 BCM.

Revenues from the deal will help fund key infrastructure upgrades, including a new pipeline from Leviathan to its production platform, raising annual output to over 14 BCM. Additionally, enhancements to the Ashkelon-Ashdod pipeline will increase gas flow into Egypt by 2 BCM per year.

In the longer term, annual capacity from Leviathan is expected to rise from 21 to 23 BCM, with 60% allocated for exports and 40% for domestic use. In 2024, Leviathan produced 11 BCM—half of which went to Egypt, while the remainder was split between Israeli consumers and Jordan.

NewMed stressed that the deal would not come at the expense of local energy needs. “From the 2040s onward, most of the gas from Leviathan will be directed to the Israeli market, ensuring energy security through to the end of the reservoir’s life,” the company said.

By Aghakazim Guliyev