Tel aviv: Israeli Energy Minister Eli Cohen announced Thursday his expectation that Israel and Egypt will finalize a new natural gas export agreement within weeks.
According to Anadolu Agency, Cohen emphasized in an interview with Yedioth Ahronoth that retaining natural gas in the Mediterranean seabed contradicts economic and geopolitical interests. He stated that Israel possesses sufficient gas reserves for 30 years, covering both export and domestic consumption needs, and stressed that laws should facilitate, not obstruct, development.
Cohen assured that the $35 billion gas-export deal with Egypt remains unblocked by Prime Minister Benjamin Netanyahu's administration. He noted that negotiations between the two governments and energy firms have significantly narrowed the gaps. Moreover, Egypt's requests for security clarifications are nearly resolved, leading Cohen to predict an imminent agreement. However, Egyptian authorities have yet to comment on these statements.
Cohen labeled the deal as historic, suggesting it would lower energy costs for Israeli consumers and enhance Israel's global and regional stature. His comments followed reports of a potential Qatari gas deal for Egypt amidst delays in finalizing the agreement with Israel. Initially announced in August, the agreement extends until 2040. Previous media reports indicated Netanyahu's blockage of the deal, citing Cairo's alleged security treaty violations, which Egypt has denied.
Israel's public broadcaster KAN, referencing an anonymous source, reported Netanyahu's approval to finalize the agreement. KAN correspondent Michael Shemesh suggested the deal could conclude soon, potentially within the week, with US mediation playing a key role in the final stages. In September, Israel Hayom reported Netanyahu's insistence on personal approval for the deal, following accusations against Egypt regarding the 1979 peace treaty's security annex.
In August, NewMed Energy expanded its gas-export agreement from the Leviathan field to Egypt, building on a 2019 deal. The new agreement, valued at $35 billion, plans for the export of 130 billion cubic meters through 2040, Israel's largest such deal. Additionally, Egypt rejected a joint Israeli-American proposal concerning Palestinian transfer and control of the Rafah crossing, following a two-year conflict in the region.
Cohen also discussed appointing a team to develop a national nuclear energy strategy, including constructing a nuclear power plant. He noted the declining costs of nuclear electricity generation due to technological advancements and plans to present these findings to the cabinet. With electricity demand in Israel rising by 3.7% annually, Cohen argued that nuclear energy is essential for future needs, including AI, quantum computing, and electric vehicles. Israel, believed to possess nuclear weapons, has not declared its arsenal nor signed the Nuclear Non-Proliferation Treaty.
Addressing infrastructure, Cohen proposed relocating the Haifa oil refinery, which sustained damage during a recent conflict with Iran. Despite resuming operations at full capacity, Cohen advocated moving the refinery to the Negev's Mishor Rotem area, a move he claims would generate thousands of jobs. He has reached an agreement with local mayors for this relocation.