Tel aviv: Israeli Prime Minister Benjamin Netanyahu announced the approval of a significant natural gas agreement with Egypt valued at 112 billion shekels, or approximately $35 billion. Netanyahu made the announcement in a televised address alongside Energy Minister Eli Cohen, emphasizing the scale of the deal, which he described as the largest gas deal in Israel's history.
According to Anadolu Agency, Netanyahu highlighted that the agreement with American company Chevron was finalized after ensuring Israel's critical security interests were protected. He stated that the agreement mandates that companies involved sell gas at favorable prices to Israeli citizens. However, Netanyahu did not elaborate on the specific security interests involved.
The Egyptian authorities have not released any official confirmation or statement concerning the deal. Previously, Israeli media reported that Netanyahu had put a hold on the gas agreement with Egypt, demanding his explicit approval amid allegations from Tel Aviv that Egypt had breached the peace treaty signed between the two countries by deploying military forces in the Sinai Peninsula-an accusation that Egypt has denied.
The historical context of the treaty dates back to March 26, 1979, when Egypt and Israel signed a peace agreement following the Camp David Accords. The treaty aimed to end the state of war, normalize relations, and ensure the demilitarization of the Sinai Peninsula.
Reports of the natural gas deal surfaced on August 7, when the newspaper Maariv disclosed that NewMed Energy had entered into a new agreement to export gas to Egypt from the Leviathan field, enhancing the existing arrangement established in 2019 for 60 billion cubic meters. Israeli media had indicated that Egypt might consider sourcing gas from Qatar if Israel did not approve the deal.
Subsequently, reports indicated a change in Netanyahu's stance, with him approving the completion of the gas agreement with Egypt. Under the terms of the deal, partners will supply Egypt with 130 billion cubic meters of gas by 2040 in return for about $35 billion.
The Leviathan field's operating rights are held by Noble Energy, which was acquired by Chevron in October 2020, with a 39.66% stake; NewMed Energy Partnership with 45.33%; and Ratio Oil Exploration holding 15%. The Egyptian energy company BOE (Blue Ocean Energy) is identified as the buyer by Israel Hayom. This agreement is the latest in a series of Israeli natural gas supply ventures to Egypt over recent years.