Israel Inks Landmark $35B Natural Gas Agreement With Egypt

In a monumental leap for regional energy cooperation and Israeli economic strength, NewMed Energy and its Leviathan gas partners have signed a record-breaking $35 billion natural gas export agreement with Egypt. The deal marks the largest in Israel’s history and promises to reshape the energy landscape of the Eastern Mediterranean.

Under the agreement, Israel will supply approximately 130 billion cubic meters (BCM) of natural gas to Egypt through 2040. Egypt’s Blue Ocean Energy will receive the gas, with exports drawn from the Leviathan reservoir a strategic resource discovered off Israel’s coast that began supplying gas to Egypt in 2020.

“This is not only an extraordinary business achievement it is a historic milestone that strengthens regional cooperation and promotes stability and hope in the Middle East,” said Yitzhak Tshuva, controlling shareholder of Delek Group, NewMed’s parent company.

The deal, an expansion of an earlier agreement for 60 BCM, will be rolled out in two phases. The first phase includes 20 additional BCM, with deliveries beginning in 2026 after infrastructure upgrades, such as a third pipeline and the Ashdod–Ashkelon transmission line. The second phase, contingent on the Leviathan Expansion Project (Phase 1B), will add another 110 BCM and require a new pipeline via Nitzana.

Once these enhancements are complete, Leviathan’s production capacity will jump to 21 BCM per year up from its current 14 BCM enabling Israel to export as much as 12 BCM annually to Egypt. The pricing will be linked to Brent crude oil, and the deal is subject to final regulatory approvals and a final investment decision (FID).

Yossi Abu, CEO of NewMed Energy, hailed the agreement as “the largest and most significant in the history of our natural gas sector,” declaring, “Leviathan is a tool for strategic reality change.” He emphasized that this deal not only boosts Israel’s energy exports but also reinforces its role as a stabilizing power in a volatile region.

The Leviathan field, one of the world’s largest deep-water natural gas discoveries, still holds around 600 BCM in reserves. With output projected through 2064, Israel is poised to remain a major player in global energy markets for decades to come.

In a time when the world looks for reliable energy sources, Israel is delivering literally. This deal cements its place not just as a startup nation, but as an energy superpartner.

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