Intensifying U.S. diplomatic efforts in the Middle East have paved the way for a groundbreaking natural gas agreement between Israel and Egypt, worth approximately £27 billion. The deal elevates Israel’s role as an energy exporter and hints at warming ties between the neighbours.
Israeli Prime Minister Benjamin Netanyahu announced the pact during a televised address on Wednesday evening. He described it as “the largest gas deal in Israel’s history” and valued it at 112 billion shekels, equivalent to roughly $34.6 billion.
U.S. energy major Chevron drives the agreement, drawing from its operations in Israel’s offshore Leviathan and Tamar fields. The 15-year supply arrangement will deliver substantial volumes to Egypt, expanding on exports that have exceeded 100 billion cubic metres since 2020, according to Israel’s Energy Ministry figures cited by Reuters.
Netanyahu stressed the pact’s broader impact. “This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region. It encourages other companies to invest in gas exploration in Israel’s economic waters.”
The revelation comes as U.S. President Donald Trump presses for a summit between Netanyahu and Egyptian President Abdel Fattah el-Sisi. Trump aims to extend the 2020 Abraham Accords, counter Iranian sway, and bolster economic links, sources told the BBC.
Jerusalem officials delayed final approval for months before acceding to pressure from Trump’s administration, insiders revealed to Al Jazeera. This move could ease strains in relations, rooted in the 1979 peace treaty yet marked by a near-decade absence of public leader meetings.
Egypt, grappling with energy needs while exporting liquefied gas to Europe during the Ukraine crisis, benefits from steady supplies. Its Petroleum Ministry has offered no official response, despite CNN’s enquiries.
Netanyahu’s statement lays groundwork for potential dialogue ahead of his late-month U.S. visit to meet Trump at Mar-a-Lago. It follows his last-minute pullout from an October peace summit in Egypt’s Sharm el-Sheikh.