Post by : Meena Ariff

Israel has secured its most significant natural gas export agreement, partnering in a monumental $35 billion deal with Chevron, NewMed, and Ratio to supply gas from the Leviathan field to Egypt. Prime Minister Benjamin Netanyahu publicly announced this groundbreaking deal, labeling it as “the largest gas agreement in Israeli history” and underlining its potential to reinforce regional stability.

The deal stipulates that Israel will provide around 130 billion cubic meters of gas to Egypt through 2040, or until all contract obligations are met. Situated off Israel’s Mediterranean coast, the Leviathan field boasts estimated reserves of roughly 600 billion cubic meters, marking it as a critical energy asset for both Israel and the wider region.

This agreement directly addresses a pressing energy shortfall in Egypt, which has been grappling with domestic demand since its production started to decline in 2022. To bridge the gap, Cairo has invested billions in liquefied natural gas imports, increasingly relying on Israel as a dependable energy ally.

Chevron has welcomed the approval for exports, having awaited the necessary Israeli permits. The company hinted back in November that it was close to making a final investment decision to expand the Leviathan field, pending the necessary export permissions.

Experts indicate that this agreement could help stabilize energy prices in Egypt while further establishing Israel's role as a vital regional energy provider. Netanyahu noted that the deal had faced delays due to unresolved regulatory and commercial matters but is optimistic about its contribution to long-term energy security in the region.

This landmark agreement reflects the increasing energy collaboration between Israel and Egypt and signifies a broader regional trend towards partnerships aimed at mitigating energy shortages and enhancing supply stability across the Eastern Mediterranean.

#Canada News #Economic News #World News