Israeli Prime Minister Benjamin Netanyahu has approved the “largest gas deal in Israel's history,” finalizing the fraught $35 billion agreement to supply Egypt with natural gas through 2040.
The announcement, made Wednesday in a televised statement, follows four months after the signing of a revised export agreement that significantly expands the volume and value of Israeli gas sold to Cairo.
“The deal is worth 112 billion shekels [$34.7 billion]. Of this total, 58 billion shekels ($18 billion) will go to the state coffers,” Netanyahu said, hailing it as a move that bolsters Israel’s status as a “regional energy power.”
The deal, signed in August, amended the existing 2019 gas export agreement between Egypt and Israel by adding 130 billion cubic meters to the contract and extending its timeline through 2040. The expected total revenue for the Israeli state now stands at $35 billion.
According to Netanyahu, the agreement is being executed in collaboration with US energy giant Chevron and its Israeli partners, who will manage the supply operations. Netanyahu emphasized that the approval came only after “intensive consultations” to ensure Israel's “top security interests” were protected, though he declined to disclose specific details.
The deal has not been without controversy. In September, only a month after the revised agreement was signed, Netanyahu publicly froze its implementation, citing an alleged breach of the Camp David Accords by Egypt for deploying troops near the Israeli border.
However, sources within Egypt’s Ministry of Petroleum had previously suggested to Al Manassa that the real motive was Israel’s push to renegotiate prices, seeking an increase of $3 per million British thermal units (MMBtu) above the current rate.
The current gas price, indexed to Brent Crude, is approximately $7.70 per MMBtu. The revised deal retains this benchmark, with minor amendments for future pricing phases.
Earlier this month, Washington had been reportedly attempting to broker a meeting between President Abdel Fattah El-Sisi and Netanyahu to reinforce regional stability, but made the meeting conditional on Netanyahu’s approval of the gas deal.
In June, Israel suspended gas flows to Egypt amid escalating military tensions with Iran, disrupting fertilizer production and driving domestic prices higher. Supply gradually resumed beginning June 26.
