Israel and Egypt Agree on $35 Billion Gas Deal for Next 15 Years

Israel's Leviathan gas field will supply $35 billion worth of gas to Egypt over 14 years. The deal includes 130 billion cubic meters of gas, with 20 billion cubic meters to be delivered in the first half of 2026 and 110 billion cubic meters once an expansion project is completed. This is the latest sign of Egypt's dependence on gas imports as its domestic production declines and demand surges.

Israel's Leviathan gas field has signed a significant deal to supply $35 billion worth of natural gas to Egypt over the next 14 years. The agreement, announced on August 7, 2025, involves the delivery of 130 billion cubic meters of gas, with the first 20 billion cubic meters set to be delivered in the first half of 2026. Once an expansion project is completed, the supply will increase to 110 billion cubic meters [1].

Egypt's growing demand for natural gas and declining domestic production have driven the country to become a net importer of liquefied natural gas (LNG) last year [1]. This latest deal with Israel is part of Egypt's broader strategy to secure gas imports to meet its energy needs. The Leviathan project has been supplying gas to Egypt since 2020 under a previous supply contract for around 60 billion cubic meters, equivalent to approximately 4.5 billion cubic meters per year [1].

The agreement is a significant milestone for both countries. For Egypt, it ensures a steady supply of natural gas, crucial for its industrial and residential sectors. For Israel, it represents a substantial revenue stream and a strategic partnership in the energy sector. The deal also underscores the importance of the Eastern Mediterranean as a key natural gas hub, with major players like Chevron involved in expanding production from fields like Leviathan and Tamar [2].

The supply of gas to Egypt was temporarily halted in June 2025 following Israel's attacks on Iran and subsequent retaliation by Tehran. The stoppage forced Cairo to halt supplies to various industries, including fertilizer producers [1]. The recent agreement aims to restore and secure this vital supply line.

This deal is part of a broader trend of energy cooperation in the region. Egypt has been actively seeking LNG deals to meet its growing energy demands, driving global competition for natural gas supplies [1]. The Eastern Mediterranean, with its substantial natural gas reserves, is emerging as a critical player in this global energy landscape.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-07/israel-to-boost-leviathan-gas-supply-to-egypt-in-major-new-deal
[2] https://naturalgasintel.com/news/eastern-meds-leviathan-and-tamar-fields-poised-to-expand-natural-gas-production-say-chevron-execs/