Israel poised to approve a 35 billion-dollar gas export deal with Egypt
After marathon talks late last night among the Leviathan partners and Israel’s Ministry of Energy and Infrastructure, a final agreement was reached to export 130 billion cubic meters (BCM) of gas to Egypt for $35 billion. Prime Minister Benjamin Netanyahu is expected to sign within the next 24 hours, potentially as soon as tonight.
Under the deal, the Leviathan consortium—NewMed Energy (TASE: NWMD), Chevron, and Ratio Petroleum Energy (TASE: RTPT)—will commit to a guaranteed price for the domestic market, reviving a gas framework that existed about a decade ago. The partners also pledged to prioritize the Israeli economy: if disruptions occur in the Tanin, Karish, or Tamar fields, gas will be diverted directly to domestic use.
Netanyahu has pressed for approval before his meeting with U.S. President-elect Donald Trump on December 29 and to align with the U.S. stance supporting Chevron. Once the government approves the agreement, the partners are expected to move to an investment decision to expand Leviathan’s infrastructure. This phase, which is anticipated to take up to two weeks, would complete the export process to Egypt ahead of Netanyahu’s trip to Washington.
Qatar’s approach to the deal
Globes reports that Qatar attempted to leverage the delays by proposing that Egypt purchase LNG from Doha instead.
The initial $35 billion deal between Leviathan partners and Egypt was signed in August. It would fund expanding production from the Leviathan field and building a new export pipeline to Egypt via Nitzana.
The expectation had been for Israeli approval within two months, but the final export permit was delayed. A key hurdle was new demands from Israel’s Energy Ministry: for exports to Egypt, the Leviathan partners would need to extend exports beyond 2040, a timeline anchored in the original contract, to enable cheaper prices for the Israeli domestic market than those specified in the expired gas framework from four years ago.
Egyptian President Abdel Fattah al-Sisi has been reluctant to engage with Qatar, in part because Emir Tamim al-Thani is associated with the Muslim Brotherhood, a development that poses domestic stability concerns for al-Sisi.
As an alternative, Egypt recently signed a $4 billion LNG deal with Hartree Partners, a U.S. merchant energy firm. That agreement, however, involves far smaller volumes than the 130 BCM agreed by Leviathan’s partners—roughly 22% of the Leviathan field and about 13% of Israel’s total gas capacity.
U.S. involvement and potential shifts
Senior American officials, including President Trump’s team, have long attempted to resolve the stalemate. U.S. Ambassador to Jerusalem Mike Huckabee and Energy Secretary Chris Wright were involved, with Wright canceling a planned trip to Israel for the signing ceremony about a month ago due to Israel’s initial reluctance.
One ongoing concern for Washington is ensuring Chevron, which holds about 39.66% of Leviathan, remains fully committed, given Chevron’s extensive holdings in the United States, Kazakhstan, and Australia. Some voices have suggested redirecting Chevron’s planned investments elsewhere.
Why this deal matters for Egypt
Egypt’s energy sector is facing serious strain. Rapid population growth—from about 44 million in 1981 to around 100 million by 2020—paired with climate pressures and management challenges has left the country in a precarious position. In 2021, Egypt’s gas production peaked at 71 BCM but, due to over-exploitation and equipment issues, fell by roughly 14% annually, reaching about 45 BCM in 2024. Domestic consumption stands near 70 BCM, underscoring the need for secure imports and infrastructure.
The deal would fund two Leviathan infrastructure projects: a pipeline from the field to the production platform, increasing output from 12 to 14 BCM per year, and the Ashkelon–Ashdod transmission line upgrade, boosting capacity to Egypt’s El-Arish corridor by 2 BCM. In the long term, the partnership sees Leviathan’s production expanding to 21–23 BCM annually, effectively doubling last year’s output.
Official responses awaited
There has been no immediate comment from the Prime Minister’s Office or the Ministry of Energy and Infrastructure.
Source: Globes, Israel business news, December 9, 2025.
© Globes Publisher Itonut (1983) Ltd., 2025.
